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Reference Value Sensitivity of Measures of Unfair Health Inequality

In: Health and Inequality

Author

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  • Pilar García-Gómez
  • Erik Schokkaert
  • Tom Van Ourti

Abstract

Most politicians and ethical observers are not interested in pure health inequalities, as they want to distinguish between different causes of health differences. Measures of “unfair” inequality – direct unfairness and the fairness gap, but also the popular standardized concentration index (CI) – therefore neutralize the effects of what are considered to be “legitimate” causes of inequality. This neutralization is performed by putting a subset of the explanatory variables at reference values, for example, their means. We analyze how the inequality ranking of different policies depends on the specific choice of reference values. We show with mortality data from the Netherlands that the problem is empirically relevant and we suggest a statistical method for fixing the reference values.

Suggested Citation

  • Pilar García-Gómez & Erik Schokkaert & Tom Van Ourti, 2013. "Reference Value Sensitivity of Measures of Unfair Health Inequality," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 157-192, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(2013)0000021008
    DOI: 10.1108/S1049-2585(2013)0000021008
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    More about this item

    Keywords

    Health inequality; inequality of opportunity; concentration index; reference value; D63; I12; I14;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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