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Inequality decomposition by population subgroups for ordinal data

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Author Info

  • Martyna Kobus

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Piotr Miłoś

    ()
    (Faculty of Mathematics, Informatics and Mechanics, University of Warsaw)

Abstract

We present a class of decomposable inequality indices for ordinal data (e.g. self-reported health survey). It is characterized by well-known inequality axioms (e.g. scale invariance) and a decomposability axiom which states that an index can be represented as a function of inequality values in subgroups and subgroup sizes. The only decomposable indices are strictly monotonic transformations of the weighted average of frequencies in categories. Among the indices proposed in the literature only the absolute value index (Abul Naga and Yalcin, 2008; Apouey, 2007) is decomposable. As an empirical illustration we calculate regional contributions to overall health inequality in Switzerland.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP64.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2011-24.

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Length: 21 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:war:wpaper:2011-24

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Keywords: ordered response health data; inequality measurement; health inequality; ordinal data; decomposition;

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References

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  1. Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
  2. Abul Naga, Ramses H. & Yalcin, Tarik, 2008. "Inequality measurement for ordered response health data," Journal of Health Economics, Elsevier, vol. 27(6), pages 1614-1625, December.
  3. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
  4. Benedicte Apouey, 2007. "Measuring health polarization with self-assessed health data," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 875-894.
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Cited by:
  1. Tugce Cuhadaroglu, 2013. "My Group Beats Your Group: Evaluating Non-Income Inequalities," Discussion Paper Series, Department of Economics 201308, Department of Economics, University of St. Andrews.
  2. Martyna Kobus, 2014. "Multidimensional polarization for ordinal data," Working Papers 326, ECINEQ, Society for the Study of Economic Inequality.
  3. repec:hal:wpaper:halshs-00850014 is not listed on IDEAS
  4. Martyna Kobus, 2014. "On the measurement of polarization for ordinal data," Working Papers 325, ECINEQ, Society for the Study of Economic Inequality.
  5. Bénédicte H. Apouey & Jacques Silber, 2013. "Inequality and bi-polarization in socioeconomic status and health: Ordinal approaches," PSE Working Papers halshs-00850014, HAL.

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