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The roots of nutritional inequality

SIEPR鈥檚 Rebecca Diamond鈥檚 latest research explores a broad range of issues that might affect how and whether low-income consumers buy healthful foods.

No matter the concern 鈥 educational opportunities or incarceration rates or life expectancy 鈥 inequality tends to have its finger on the scale. This is certainly the case when it comes to healthcare outcomes: Obesity, for instance, is far more prevalent among those with lower incomes, as is unhealthy eating.

Rebecca Diamond

But why this nutritional disparity exists is a sticky problem, with one camp of scholars and policymakers attributing the cause to an absence of grocery stores in poor neighborhoods 鈥 so-called food deserts. This is an intuitively attractive idea. Without easy access to healthy foods, people are more likely to purchase unhealthy foods. It also provides a straightforward solution: Build more grocery stores. And so the Affordable Care Act has paid out $100 million to help 鈥渆liminate food deserts.鈥 Pennsylvania alone has provided $85 million to subsidize the supply of healthy food in underserved areas.

But what if proximity to grocery stores isn鈥檛 the real problem? Or, more pointedly, what if there鈥檚 a more efficient way to close this nutritional gap, if $100 million spent on food deserts is, in the end, money misspent?

The False Lead of Food Deserts

Rebecca Diamond, a faculty fellow at the 九色社区 Institute for Economic Policy Research (SIERP) and an assistant professor of economics at 九色社区 Graduate School of Business, recently took up the question of how inequality and nutrition interact.

Partnering with two colleagues, New York University鈥檚 Hunt Allcott and the University of Chicago鈥檚 Jean-Pierre Dub茅, she explored a broad range of issues that might affect how and whether low-income consumers purchase nutritional foods. 鈥淥nce we started doing this analysis, it became pretty clear that supply wasn鈥檛 that big a deal,鈥 she says.

People, it turns out, are willing to drive to get groceries, with residents of food deserts purchasing almost 90% of their groceries from supermarkets outside of their neighborhoods. When a new store opens locally, it may draw business away from more distant competitors, but it does little to influence eating habits. Diamond and her colleagues found that, at most, the absence of local supply accounts for 9% of the nutrition gap between rich and poor. 鈥淎nd statistically we couldn鈥檛 even reject the possibility that it鈥檚 zero percent,鈥 she said.

In this sense, the authors write in the paper, the entire notion of a 鈥渇ood desert鈥 is somewhat misleading. 鈥淎ny benefits of 鈥榗ombating food deserts鈥 derive less from healthy eating and more from reducing travel costs,鈥 they say. The real issue dividing nutritional intake between rich and poor households is instead linked to demand.

The Unexpected Role of Education

The important question, the researchers decided, is what does it mean to have different preferences across the income distribution? 鈥淲hy would households have these different demands?鈥 Diamond says.

Diamond and her colleagues investigated, and discarded, a range of potential explanations. Poorer families don鈥檛, for instance, seem to maximize calories per dollar, which would incline them toward unhealthier purchases; nor is the relative expense of healthier foods a decisive factor in whether people choose to purchase healthy foods. (In fact, excluding fresh produce, healthy foods are about 8 percent less expensive than unhealthy foods.) Convenience of preparation has no explanatory power, and neither do geographical norms: When families that have unhealthy eating habits move to neighborhoods where healthier eating is predominant, their habits don鈥檛 change.

The real issue dividing nutritional intake between rich and poor households is linked to demand.

What ultimately explains almost 30 percent of demand for healthy groceries is education 鈥 both consumers鈥 educational attainment as well as their nutritional knowledge. 鈥淜nowledge and information may mitigate a significant amount of this disparity,鈥 says Diamond. 鈥淎nd this suggests that policies to improve knowledge could help to close this gap.鈥

This is a timely insight, as poor nutrition remains a staggering public health burden, contributing to hundreds of billions of dollars in medical costs every year. Nutritional inequality has also been growing over the past several years. New methods of intervention 鈥 better education rather than more grocery stores 鈥 could make people healthier while lowering healthcare costs, a large share of which are borne publicly, through Medicaid.

Implications Beyond Nutrition

But the takeaway, notes Diamond, extends beyond nutrition. The original literature on food deserts and their potential connection with nutritional deficiencies was often based on small samples 鈥 one or two neighborhoods 鈥 and incomplete data. She and her colleagues, meanwhile, drew on vast, modern datasets to get a clearer picture of what was going on.

鈥淥ne reason we were able to make so much headway on this question was because the unparalleled quality of the data allowed us to look at this in unprecedented detail,鈥 Diamond says. And while she noted many fields are getting better about using evidence-based approaches, it鈥檚 imperative to keep this momentum. Policymakers should collect robust data and, importantly, look beyond simple correlations to design the most economical and effective interventions.

鈥淐orrelations are suggestive,鈥 she says, 鈥渂ut not conclusive. And we absolutely need high-quality data to devise the best solutions.鈥

A version of this article originally appeared in .

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