The Health Consequences of a Collapsed Economy: Evaluating the Impact of the Economic Crisis in Iceland on Health and Health Inequalities

Thursday, June 27, 2013
C0.17 (Oudemanhuispoort)
Asa Asgeirsdottir , Sociology, University of Iceland
Sigrun Olafsdottir , Boston University
Stefan H Jonsson , Sociology, University of Iceland
Sociologists have long been interested in the relationship between social change and individual well-being. Here, the focus has often been on what happens when things worsen in societies, for example, during economic recessions. The beginning of the 21st century provides us with ample examples of economic downturns, but thus far, none has perhaps been as sudden and drastic as the economic collapse in Iceland in 2008. Within a week, citizens living in one of the most prosperous countries in the world, witnessed all the national banks go bankrupt, followed by a uncertainties about their own financial future as well as the financial future of the country. Not surprisingly, this was followed by major political and cultural upheaval, which resulted in the government resigning and the formation of the first left party government in Iceland for decades. The 2007 and 2009 Health and wellbeing of Icelanders Studies, provides a unique opportunity to evaluate the health consequences of these events on the Icelandic population in general and on vulnerable societal groups in particular. In this paper, we evaluate, across conditions, how health and health inequalities are impacted by a major crisis, and how these outcomes may be modified by protective or risk factors associated with health outcomes. Our findings indicate that the short term impact of a crisis is more likely to be observed in the mental health domain, and that the social environment of individuals matter for their likelihood of experiencing negative health consequences when faced with a major social change.