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Equity in Health and Equivalent Incomes

In: Health and Inequality

Author

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  • Erik Schokkaert
  • Carine Van de Voorde
  • Brigitte Dormont
  • Marc Fleurbaey
  • Stéphane Luchini
  • Anne-Laure Samson
  • Clémence Thébaut

Abstract

We compare two approaches to measuring inequity in the health distribution. The first is the concentration index. The second is the calculation of the inequality in an overall measure of individual well-being, capturing both the income and health dimensions. We introduce the concept of equivalent income as a measure of well-being that respects preferences with respect to the trade-off between income and health, but is not subjectively welfarist since it does not rely on the direct measurement of happiness. Using data from a representative survey in France, we show that equivalent incomes can be measured using a contingent valuation method. We present counterfactual simulations to illustrate the different perspectives of the approaches with respect to distributive justice.

Suggested Citation

  • Erik Schokkaert & Carine Van de Voorde & Brigitte Dormont & Marc Fleurbaey & Stéphane Luchini & Anne-Laure Samson & Clémence Thébaut, 2013. "Equity in Health and Equivalent Incomes," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 131-156, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(2013)0000021007
    DOI: 10.1108/S1049-2585(2013)0000021007
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    Cited by:

    1. Marko Ledic & Ivica Rubil, 2020. "Does going beyond income make a difference? Income vs. equivalent income in the EU over 2007-2011," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 423-462.
    2. Anne‐Laure Samson & Erik Schokkaert & Clémence Thébaut & Brigitte Dormont & Marc Fleurbaey & Stéphane Luchini & Carine Van de Voorde, 2018. "Fairness in cost‐benefit analysis: A methodology for health technology assessment," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 102-114, January.
    3. Erik Schokkaert & Jonas Steel & Carine Van de Voorde, 2017. "Out-of-Pocket Payments and Subjective Unmet Need of Healthcare," Applied Health Economics and Health Policy, Springer, vol. 15(5), pages 545-555, October.
    4. H. Xavier Jara & Erik Schokkaert, 2017. "Putting measures of individual well-being to use for ex-ante policy evaluation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(4), pages 421-440, December.

    More about this item

    Keywords

    Healthy-equivalent income; concentration index; inequity in health; contingent valuation; D63; H51; I18;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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