Correcting the Concentration Index for Binary Variables
AbstractThis 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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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2011:4.
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.
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/
More information through EDIRC
health inequalities; socioeconomic inequality; concentration index; binary variables;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I10 - Health, Education, and Welfare - - Health - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Health, Econometrics and Data Group (HEDG) Working Papers
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- 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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