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Correcting the Concentration Index for Binary Variables

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Author Info

  • Kjellsson , Gustav

    ()
    (Department of Economics, Lund University)

  • Gerdtham, Ulf-G

    ()
    (Department of Economics, Lund University)

Abstract

This paper discusses measurement of socioeconomic inequalities in prevalence of a health condition. As its point of departure, it uses the recent exchange between Guido Erreygers and Adam Wagstaff in this journal, where they discuss merits of their own corrections of the frequently used concentration index. The paper first reconciles the debate between Erreygers and Wagstaff and discusses the value judgments that are hidden behind their indices. Secondly, it discusses when the property level independence is desirable. Thirdly, it empirically illustrates whether and when the choice of index affects comparisons between contexts using binary health indicators from the European Survey of Health, Ageing and Retirement (SHARE). The results show that choice of index matters and that it not only affects the magnitude of measured inequalities but also internal ranking between countries.

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File URL: http://project.nek.lu.se/publications/workpap/papers/WP11_4.pdf
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Bibliographic Info

Paper provided by Lund University, Department of Economics in its series Working Papers with number 2011:4.

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Length: 35 pages
Date of creation: 20 Jan 2011
Date of revision:
Publication status: Published as Kjellsson, Gustav and Ulf-G Gerdtham, 'On Correcting the Concentration Index for Binary Variables' in Journal of Health Economcs, 2013, pages 659-670.
Handle: RePEc:hhs:lunewp:2011_004

Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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Keywords: health inequalities; socioeconomic inequality; concentration index; binary variables;

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References

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  1. van Doorslaer, Eddy & Gerdtham, Ulf-G., 2003. "Does inequality in self-assessed health predict inequality in survival by income? Evidence from Swedish data," Social Science & Medicine, Elsevier, vol. 57(9), pages 1621-1629, November.
  2. Cristina Hernández Quevedo & Andrew M Jones & Ángel López Nicolás & Nigel Rice, 2005. "Socioeconomic inequalities in health: a comparative longitudinal analysis using the European Community Household Panel," Health, Econometrics and Data Group (HEDG) Working Papers 05/12, HEDG, c/o Department of Economics, University of York.
  3. Clarke, Philip M. & Gerdtham, Ulf-G. & Johannesson, Magnus & Bingefors, Kerstin & Smith, Len, 2002. "On the measurement of relative and absolute income-related health inequality," Social Science & Medicine, Elsevier, vol. 55(11), pages 1923-1928, December.
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Cited by:
  1. Carrieri, Vincenzo & Wuebker, Ansgar, 2013. "Assessing inequalities in preventive care use in Europe," Health Policy, Elsevier, vol. 113(3), pages 247-257.
  2. Allanson, Paul & Petrie, Dennis, 2012. "Understanding the vertical equity judgements underpinning health inequality measures," SIRE Discussion Papers 2012-06, Scottish Institute for Research in Economics (SIRE).
  3. Carrieri, V.; & Wuebker, A.;, 2012. "Assessing inequalities in preventive care use in Europe: A special case of health-care inequalities?," Health, Econometrics and Data Group (HEDG) Working Papers 12/25, HEDG, c/o Department of Economics, University of York.
  4. Erreygers, Guido & Van Ourti, Tom, 2011. "Measuring socioeconomic inequality in health, health care and health financing by means of rank-dependent indices: A recipe for good practice," Journal of Health Economics, Elsevier, vol. 30(4), pages 685-694, July.
  5. Erreygers, Guido & Clarke, Philip & Van Ourti, Tom, 2012. "“Mirror, mirror, on the wall, who in this land is fairest of all?”—Distributional sensitivity in the measurement of socioeconomic inequality of health," Journal of Health Economics, Elsevier, vol. 31(1), pages 257-270.
  6. 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 2012:21, Lund University, Department of Economics.

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