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Revisiting the Income-Health Nexus: The Importance of Choosing the "Right" Indicator

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  • Ziebarth, Nicolas R.

    ()
    (Cornell University)

  • Frick, Joachim R.

    (DIW Berlin)

Abstract

We show that the choice of the welfare measure has a substantial impact on the degree of welfare-related health inequality. Combining various income and wealth measures with different health measures, we calculate 80 health concentration indices. The influence of the welfare measure is more pronounced when using subjective health measures than when using objective health measures.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4787.

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Length: 10 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:iza:izadps:dp4787

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Keywords: SOEP; health inequality; concentration index; income measurement;

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References

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  1. Kakwani, Nanak & Wagstaff, Adam & van Doorslaer, Eddy, 1997. "Socioeconomic inequalities in health: Measurement, computation, and statistical inference," Journal of Econometrics, Elsevier, vol. 77(1), pages 87-103, March.
  2. Guido Erreygers & Tom Van Ourti, 2011. "Putting the cart before the horse. A comment on Wagstaff on inequality measurement in the presence of binary variables," Health Economics, John Wiley & Sons, Ltd., vol. 20(10), pages 1161-1165, October.
  3. Jusot, Florence & Tubeuf, Sandy, 2011. "Social health inequalities among older Europeans : the contribution of social and family background," Economics Papers from University Paris Dauphine 123456789/5401, Paris Dauphine University.
  4. Edward N. Wolff & Ajit Zacharias, 2006. "Household Wealth and the Measurement of Economic Well-Being in the United States," Economics Working Paper Archive wp_447, Levy Economics Institute.
  5. Hendrik Jürges, 2006. "True health vs. response styles: Exploring cross-country differences in self-reported health," MEA discussion paper series 06105, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  6. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins & Jeff Larrimore, 2008. "Estimating Trends in US Income Inequality Using the Current Population Survey: The Importance of Controlling for Censoring," NBER Working Papers 14247, National Bureau of Economic Research, Inc.
  7. Doorslaer, Eddy van & Jones, Andrew M., 2003. "Inequalities in self-reported health: validation of a new approach to measurement," Journal of Health Economics, Elsevier, vol. 22(1), pages 61-87, January.
  8. Joachim R. Frick & Markus M. Grabka & Jan Marcus, 2007. "Editing and Multiple Imputation of Item-Non-Response in the 2002 Wealth Module of the German Socio-Economic Panel (SOEP)," Data Documentation 18, DIW Berlin, German Institute for Economic Research.
  9. Matthias Nübling & Hanfried H. Andersen & Axel Mühlbacher & Jürgen Schupp & Gert G. Wagner, 2007. "Computation of Standard Values for Physical and Mental Health Scale Scores Using the SOEP Version of SF12v2," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 171-182.
  10. Le Grand, Julian, 1987. "Inequalities in health : Some international comparisons," European Economic Review, Elsevier, vol. 31(1-2), pages 182-191.
  11. Schmitz, Hendrik, 2011. "Why are the unemployed in worse health? The causal effect of unemployment on health," Labour Economics, Elsevier, vol. 18(1), pages 71-78, January.
  12. Pfarr, Christian & Schneider, Brit S. & Schneider, Udo & Ulrich, Volker, 2010. "I feel good! Gender differences and reporting heterogeneity in self-assessed health," MPRA Paper 24231, University Library of Munich, Germany.
  13. Ziebarth, Nicolas, 2010. "Measurement of health, health inequality, and reporting heterogeneity," Social Science & Medicine, Elsevier, vol. 71(1), pages 116-124, July.
  14. Magnus Lindelow, 2006. "Sometimes more equal than others: how health inequalities depend on the choice of welfare indicator," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 263-279.
  15. Guido Erreygers & Tom Van Ourti, 2010. "Measuring Socioeconomic Inequality in Health, Health Care and Health Financing by Means of Rank-Dependent Indices: A Recipe for Good Practice," Tinbergen Institute Discussion Papers 10-076/3, Tinbergen Institute.
  16. repec:ese:iserwp:2008-25 is not listed on IDEAS
  17. Joachim R. Frick & Markus M. Grabka & Eva M. Sierminska, 2007. "Representative Wealth Data for Germany from the German SOEP: The Impact of Methodological Decisions around Imputation and the Choice of the Aggregation Unit," Discussion Papers of DIW Berlin 672, DIW Berlin, German Institute for Economic Research.
  18. Erreygers, Guido, 2009. "Correcting the Concentration Index," Journal of Health Economics, Elsevier, vol. 28(2), pages 504-515, March.
  19. Buhong Zheng, 2011. "A new approach to measure socioeconomic inequality in health," Journal of Economic Inequality, Springer, vol. 9(4), pages 555-577, December.
  20. Adam Wagstaff, 2005. "The bounds of the concentration index when the variable of interest is binary, with an application to immunization inequality," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 429-432.
  21. Nicolas R. Ziebarth, 2009. "Measurement of Health, the Sensitivity of the Concentration Index, and Reporting Heterogeneity," Discussion Papers of DIW Berlin 916, DIW Berlin, German Institute for Economic Research.
  22. Adam Wagstaff & Naoko Watanabe, 2003. "What difference does the choice of SES make in health inequality measurement?," Health Economics, John Wiley & Sons, Ltd., vol. 12(10), pages 885-890.
  23. Ramses H. Abul Naga & Tarik Yalcin, 2007. "Inequality Measurement forOrdered Response Health Data," STICERD - Distributional Analysis Research Programme Papers 92, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  24. Hai Zhong, 2010. "The impact of missing data in the estimation of concentration index: a potential source of bias," The European Journal of Health Economics, Springer, vol. 11(3), pages 255-266, June.
  25. Ann Lecluyse, 2007. "Income-related health inequality in Belgium: a longitudinal perspective," The European Journal of Health Economics, Springer, vol. 8(3), pages 237-243, September.
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Cited by:
  1. Schneider, Julia & Beblo, Miriam, 2010. "Health at work - indicators and determinants : a revised literature and data review for Germany," IAB Discussion Paper 201017, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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