A number of theories about why poverty increases depression risk include the following:
- Epigenetic changes
- Financial Anxiety
- Restricted diets
- Poor living conditions/environmental conditions

Michigan State University

In general, poverty is positively correlated with the presence of depressive disorders. The specifics of this can vary based on what criteria is used, however.

Poverty and Depression

Vergés, A. (2021). Poverty, Social Inequity, and Depression. In Etiopathogenic Theories and Models in Depression (pp. 223-241). Springer, Cham.

Poverty, Social Inequity, and Depression

Researchers have consistently found that income level and depressive symptoms over a person's lifetime have a negative correlation. Therefore, low income is a risk factor of developing depression.

Income and Depression

Studies have also found that the more time someone spends in educational settings, the less likely they are to develop depression. As those living in poverty usually cannot attend higher or even basic education, this means that impoverished people will have another risk factor for depression.

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