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Accounting for the dead in the longitudinal analysis of income-related health inequalities

  • Petrie, Dennis
  • Allanson, Paul
  • Gerdtham, Ulf-G

This paper develops an accounting framework to consider the effect of deaths on the longitudinal analysis of income-related health inequalities. Ignoring deaths or using inverse probability weights (IPWs) to re-weight the sample for mortality-related attrition can produce misleading results, since to do so would be to disregard the most extreme of all health outcomes. Incorporating deaths into the longitudinal analysis of income-related health inequalities provides a more complete picture in terms of the evaluation of health changes in respect to socioeconomic status. We illustrate our work by investigating health mobility in Quality Adjusted Life Years (QALYs) as measured by the SF6D from 1999 till 2004 using the British Household Panel Survey (BHPS). We show that for Scottish males explicitly accounting for the dead, rather than using IPWs to account for mortality-related attrition, changes the direction of the relationship between relative health changes and initial income position, while for other population groups it increases the strength of this relationship by up to 14 times. When deaths are explicitly incorporated into the analysis it is found that over this five year period for both Scotland and England & Wales the relative health changes were significantly regressive such that the poor experienced a larger share of the health losses relative to their initial share of health and a large amount of this was related to mortality.

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File URL: http://repo.sire.ac.uk/handle/10943/229
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Paper provided by Scottish Institute for Research in Economics (SIRE) in its series SIRE Discussion Papers with number 2010-98.

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Date of creation: 2010
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Handle: RePEc:edn:sirdps:229
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  1. Petrie, Dennis & Allanson, Paul & Gerdtham, Ulf-G, 2011. "Accounting for the dead in the longitudinal analysis of income-related health inequalities," Working Papers 2011:9, Lund University, Department of Economics.
  2. Erreygers, Guido, 2009. "Correcting the Concentration Index," Journal of Health Economics, Elsevier, vol. 28(2), pages 504-515, March.
  3. Allanson, Paul, 2010. "Longitudinal analysis of income-related health inequality: welfare foundations and alternative measures," SIRE Discussion Papers 2010-71, Scottish Institute for Research in Economics (SIRE).
  4. Angus Deaton, 2002. "Health, inequality, and economic development," Working Papers 209, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  5. Andrew M. Jones & Angel López, 2003. "Measurement and Explanation of Socioeconomic Inequality in Health with Longitudinal Data," Working Papers 35, Barcelona Graduate School of Economics.
  6. Lahelma, Eero & Kivelä, Katariina & Roos, Eva & Tuominen, Terhi & Dahl, Espen & Diderichsen, Finn & Elstad, Jon Ivar & Lissau, Inge & Lundberg, Olle & Rahkonen, Ossi & Rasmussen, Niels Kristian & Yngw, 2002. "Analysing changes of health inequalities in the Nordic welfare states," Social Science & Medicine, Elsevier, vol. 55(4), pages 609-625, August.
  7. Allanson, Paul & Gerdtham, Ulf-G. & Petrie, Dennis, 2010. "Longitudinal analysis of income-related health inequality," Journal of Health Economics, Elsevier, vol. 29(1), pages 78-86, January.
  8. Brazier, John & Roberts, Jennifer & Deverill, Mark, 2002. "The estimation of a preference-based measure of health from the SF-36," Journal of Health Economics, Elsevier, vol. 21(2), pages 271-292, March.
  9. Wagstaff, Adam & van Doorslaer, Eddy, 2000. "Chapter 34 Equity in health care finance and delivery," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 34, pages 1803-1862 Elsevier.
  10. Erreygers, Guido, 2009. "Correcting the Concentration Index: A reply to Wagstaff," Journal of Health Economics, Elsevier, vol. 28(2), pages 521-524, March.
  11. M. Kamrul Islam & Ulf-G. Gerdtham & Philip Clarke & Kristina Burström, 2010. "Does income-related health inequality change as the population ages? Evidence from Swedish panel data," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 334-349.
  12. Hans van Kippersluis & Tom van Ourti & Owen O'Donnell & Eddy van Doorslaer, 2008. "Health and Income across the Life Cycle and Generations in Europe," Tinbergen Institute Discussion Papers 08-009/3, Tinbergen Institute.
  13. Eddy van Doorslaer & Xander Koolman, 2004. "Explaining the differences in income-related health inequalities across European countries," Health Economics, John Wiley & Sons, Ltd., vol. 13(7), pages 609-628.
  14. Wildman, John, 2003. "Income related inequalities in mental health in Great Britain: analysing the causes of health inequality over time," Journal of Health Economics, Elsevier, vol. 22(2), pages 295-312, March.
  15. Paula K. Lorgelly & Joanne Lindley, 2008. "What is the relationship between income inequality and health? Evidence from the BHPS," Health Economics, John Wiley & Sons, Ltd., vol. 17(2), pages 249-265.
  16. Benzeval, Michaela & Judge, Ken, 2001. "Income and health: the time dimension," Social Science & Medicine, Elsevier, vol. 52(9), pages 1371-1390, May.
  17. Olga Kiuila & Peter Mieszkowski, 2007. "The effects of income, education and age on health," Health Economics, John Wiley & Sons, Ltd., vol. 16(8), pages 781-798.
  18. Andrew M. Jones & Xander Koolman & Nigel Rice, 2006. "Health-related non-response in the British Household Panel Survey and European Community Household Panel: using inverse-probability-weighted estimators in non-linear models," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(3), pages 543-569.
  19. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
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