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Does income-related health inequality change as the population ages? Evidence from Swedish panel data

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  • M. Kamrul Islam

    (Department of Economics, University of Bergen, Bergen, Norway)

  • Ulf-G. Gerdtham
  • Philip Clarke

    (School of Public Health, University of Sydney, Sydney, Australia)

  • Kristina Burström

Abstract

This paper explains and empirically assesses the channels through which population aging may impact on income-related health inequality. Long panel data of Swedish individuals is used to estimate the observed trend in income-related health inequality, measured by the concentration index (CI). A decomposition procedure based on a fixed effects model is used to clarify the channels by which population aging affects health inequality. Based on current income rankings, we find that conventional unstandardized and age-gender-standardized CIs increase over time. This trend in CIs is, however, found to remain stable when people are instead ranked according to lifetime (mean) income. Decomposition analyses show that two channels are responsible for the upward trend in unstandardized CIs - retired people dropped in relative income ranking and the coefficient of variation of health increases as the population ages. Copyright © 2009 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1479
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 19 (2010)
Issue (Month): 3 ()
Pages: 334-349

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Handle: RePEc:wly:hlthec:v:19:y:2010:i:3:p:334-349

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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Cited by:
  1. Petrie, Dennis & Allanson, Paul & Gerdtham, Ulf-G, 2010. "Accounting for the dead in the longitudinal analysis of income-related health inequalities," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2010-98, Scottish Institute for Research in Economics (SIRE).
  2. van Kippersluis, Hans & Van Ourti, Tom & O'Donnell, Owen & van Doorslaer, Eddy, 2009. "Health and income across the life cycle and generations in Europe," Journal of Health Economics, Elsevier, Elsevier, vol. 28(4), pages 818-830, July.
  3. Dennis Petrie & Paul Allanson & Ulf-G Gerdtham, 2010. "Accounting for the dead in the longitudinal analysis of income-related health inequalities," Dundee Discussion Papers in Economics, Economic Studies, University of Dundee 248, Economic Studies, University of Dundee.
  4. Gerdtham, Ulf-G & Lundborg, Petter & Lyttkens, Carl Hampus & Nystedt, Paul, 2012. "Do Socioeconomic Factors Really Explain Income-Related Inequalities in Health? Applying a Twin Design to Standard Decomposition Analysis," Working Papers, Lund University, Department of Economics 2012:21, Lund University, Department of Economics.
  5. Hans van Kippersluis & Tom van Ourti & Owen O'Donnell & Eddy van Doorslaer, 2008. "Health and Income across the Life Cycle and Generations in Europe," Tinbergen Institute Discussion Papers, Tinbergen Institute 08-009/3, Tinbergen Institute.
  6. Mototsugu Fukushige & Noriko Ishikawa & Satoko Maekawa, 2012. "A modified Kakwani measure for health inequality," Health Economics Review, Springer, Springer, vol. 2(1), pages 1-7, December.

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