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

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

Abstract

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.

Suggested Citation

  • Petrie, Dennis & Allanson, Paul & Gerdtham, Ulf-G, 2010. "Accounting for the dead in the longitudinal analysis of income-related health inequalities," SIRE Discussion Papers 2010-98, Scottish Institute for Research in Economics (SIRE).
  • Handle: RePEc:edn:sirdps:229
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    File URL: http://hdl.handle.net/10943/229
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    References listed on IDEAS

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    1. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    2. Petrie, Dennis & Allanson, Paul & Gerdtham, Ulf-G., 2011. "Accounting for the dead in the longitudinal analysis of income-related health inequalities," Journal of Health Economics, Elsevier, vol. 30(5), pages 1113-1123.
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    Citations

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    Cited by:

    1. Hansen, Fredrik & Anell, Anders & Gerdtham, Ulf-G & Lyttkens, Carl Hampus, 2013. "The Future of Health Economics: The Potential of Behavioral and Experimental Economics," Working Papers 2013:20, Lund University, Department of Economics.
    2. Paul Allanson, 2010. "Longitudinal analysis of income-related health inequality: welfare foundations and alternative measures," Dundee Discussion Papers in Economics 240, Economic Studies, University of Dundee.
    3. Calara, Paul Samuel & Gerdtham, Ulf-G & Petrie, Dennis, 2016. "The Dynamics of Income-Related Health Inequalities in Australia versus Great Britain," Working Papers 2016:20, Lund University, Department of Economics.
    4. Paul Allanson & Dennis Petrie, 2011. "On decomposing the causes of changes in income-related health inequality with longitudinal data," Dundee Discussion Papers in Economics 250, Economic Studies, University of Dundee.
    5. Petrie, Dennis & Allanson, Paul & Gerdtham, Ulf-G., 2011. "Accounting for the dead in the longitudinal analysis of income-related health inequalities," Journal of Health Economics, Elsevier, vol. 30(5), pages 1113-1123.
    6. Madden, D., 2016. "Child and Adolescent Obesity in Ireland: A Longitudinal Perspective," Health, Econometrics and Data Group (HEDG) Working Papers 16/12, HEDG, c/o Department of Economics, University of York.
    7. Baeten, Steef & Van Ourti, Tom & van Doorslaer, Eddy, 2013. "Rising inequalities in income and health in China: Who is left behind?," Journal of Health Economics, Elsevier, vol. 32(6), pages 1214-1229.
    8. Gustav Kjellsson & Dennis Petrie & Tom (T.G.M.) van Ourti, 2018. "Measuring income-related inequalities in risky health prospects," Tinbergen Institute Discussion Papers 18-007/V, Tinbergen Institute.
    9. Baeten, Steef & Van Ourti, Tom & van Doorslaer, Eddy, 2013. "The socioeconomic health gradient across the life cycle: What role for selective mortality and institutionalization?," Social Science & Medicine, Elsevier, vol. 97(C), pages 66-74.
    10. Nesson, Erik T. & Robinson, Joshua J., 2015. "An information theory based framework for the measurement of population health," Economics & Human Biology, Elsevier, vol. 17(C), pages 86-103.
    11. Halleröd, Björn & Gustafsson, Jan-Eric, 2011. "A longitudinal analysis of the relationship between changes in socio-economic status and changes in health," Social Science & Medicine, Elsevier, vol. 72(1), pages 116-123, January.
    12. Allanson, Paul & Petrie, Dennis, 2013. "Longitudinal methods to investigate the role of health determinants in the dynamics of income-related health inequality," Journal of Health Economics, Elsevier, vol. 32(5), pages 922-937.
    13. repec:wly:hlthec:v:25:y:2016:i::p:141-158 is not listed on IDEAS
    14. Max Coveney & Pilar García‐Gómez & Eddy Van Doorslaer & Tom Van Ourti, 2016. "Health Disparities by Income in Spain Before and After the Economic Crisis," Health Economics, John Wiley & Sons, Ltd., vol. 25, pages 141-158, November.

    More about this item

    Keywords

    mortality; morbidity; income-related health inequality; mobility analysis; longitudinal data; inverse probability weights;

    JEL classification:

    • D39 - Microeconomics - - Distribution - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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