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A unified structural equation modeling approach for the decomposition of rank-dependent indicators of socioeconomic inequality of health

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  • KESSELS, Roselinde
  • ERREYGERS, Guido

Abstract

In this paper we present a unified structural equation modeling (SEM) framework for the regression-based decomposition of rank-dependent indicators of socioeconomic inequality of health and compare it with simple ordinary least squares (OLS) regression. The SEM framework forms the basis for a proper use of the most prominent one- and two-dimensional decompositions and provides an argument for using the bivariate multiple regression model for two-dimensional decomposition. Within the SEM framework, the two-dimensional decomposition integrates the feedback mechanism between health and socioeconomic status and allows for different sets of determinants of these variables. We illustrate the SEM approach and its outperformance to OLS using data from the Ethiopia 2011 Demographic and Health Survey (DHS).

Suggested Citation

  • KESSELS, Roselinde & ERREYGERS, Guido, 2014. "A unified structural equation modeling approach for the decomposition of rank-dependent indicators of socioeconomic inequality of health," Working Papers 2014013, University of Antwerp, Faculty of Business and Economics.
    • Handle: RePEc:ant:wpaper:2014013
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    6. Guido Erreygers & Roselinde Kessels, 2013. "Regression-Based Decompositions of Rank-Dependent Indicators of Socioeconomic Inequality of Health," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 227-259, Emerald Group Publishing Limited.
    7. Van Ourti, Tom & van Doorslaer, Eddy & Koolman, Xander, 2009. "The effect of income growth and inequality on health inequality: Theory and empirical evidence from the European Panel," Journal of Health Economics, Elsevier, vol. 28(3), pages 525-539, May.
    8. Erreygers, Guido, 2009. "Correcting the Concentration Index," Journal of Health Economics, Elsevier, vol. 28(2), pages 504-515, March.
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    11. Guido Erreygers & Roselinde Kessels, 2017. "Socioeconomic Status and Health: A New Approach to the Measurement of Bivariate Inequality," IJERPH, MDPI, vol. 14(7), pages 1-23, June.
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    Cited by:

    1. Martha Tangeni Nghipandulwa & Alfred Kechia Mukong, 2023. "Estimating Income-Related Health Inequalities Associated with Tobacco and Alcohol Consumption in Namibia," IJERPH, MDPI, vol. 20(2), pages 1-17, January.
    2. Camilla Sortsø & Jørgen Lauridsen & Martha Emneus & Anders Green & Peter Bjødstrup Jensen, 2017. "Socioeconomic inequality of diabetes patients’ health care utilization in Denmark," Health Economics Review, Springer, vol. 7(1), pages 1-22, December.
    3. Guido Erreygers & Roselinde Kessels & Linkun Chen & Philip Clarke, 2016. "Decomposing Socioeconomic Inequality of Health," EcoMod2016 9574, EcoMod.
    4. Heckley, Gawain & Gerdtham, Ulf-G. & Kjellsson, Gustav, 2016. "A general method for decomposing the causes of socioeconomic inequality in health," Journal of Health Economics, Elsevier, vol. 48(C), pages 89-106.
    5. Christiansen, Terkel & Lauridsen, Jørgen T., 2016. "Dynamic Changes in Determinants of Inequalities in Health in Europe with Focus on Retired - with Particular Regard to Retired Danes," DaCHE discussion papers 2016:8, University of Southern Denmark, Dache - Danish Centre for Health Economics.

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    More about this item

    Keywords

    Inequality measurement; Concentration index; Decomposition methods; Structural Equation Modeling (SEM);
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I00 - Health, Education, and Welfare - - General - - - General

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