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Correcting the Concentration Index for Binary Variables

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Abstract

This paper discusses measurement of socioeconomic inequalities in prevalence of a health condition. As its point of departure, it uses the recent exchange between Guido Erreygers and Adam Wagstaff in this journal, where they discuss merits of their own corrections of the frequently used concentration index. The paper first reconciles the debate between Erreygers and Wagstaff and discusses the value judgments that are hidden behind their indices. Secondly, it discusses when the property level independence is desirable. Thirdly, it empirically illustrates whether and when the choice of index affects comparisons between contexts using binary health indicators from the European Survey of Health, Ageing and Retirement (SHARE). The results show that choice of index matters and that it not only affects the magnitude of measured inequalities but also internal ranking between countries.

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  • Kjellsson , Gustav & Gerdtham, Ulf-G, 2011. "Correcting the Concentration Index for Binary Variables," Working Papers 2011:4, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2011_004
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    File URL: http://project.nek.lu.se/publications/workpap/papers/WP11_4.pdf
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    1. van Doorslaer, Eddy & Gerdtham, Ulf-G., 2003. "Does inequality in self-assessed health predict inequality in survival by income? Evidence from Swedish data," Social Science & Medicine, Elsevier, vol. 57(9), pages 1621-1629, November.
    2. Hernández-Quevedo, Cristina & Jones, Andrew M. & López-Nicolás, Angel & Rice, Nigel, 2006. "Socioeconomic inequalities in health: A comparative longitudinal analysis using the European Community Household Panel," Social Science & Medicine, Elsevier, vol. 63(5), pages 1246-1261, September.
    3. Clarke, Philip M. & Gerdtham, Ulf-G. & Johannesson, Magnus & Bingefors, Kerstin & Smith, Len, 2002. "On the measurement of relative and absolute income-related health inequality," Social Science & Medicine, Elsevier, vol. 55(11), pages 1923-1928, December.
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    Cited by:

    1. Paul Allanson & Dennis Petrie, 2014. "Understanding The Vertical Equity Judgements Underpinning Health Inequality Measures," Health Economics, John Wiley & Sons, Ltd., vol. 23(11), pages 1390-1396, November.
    2. Carrieri, Vincenzo & Wuebker, Ansgar, 2013. "Assessing inequalities in preventive care use in Europe," Health Policy, Elsevier, vol. 113(3), pages 247-257.
    3. Gerdtham, Ulf-G & Lundborg, Petter & Lyttkens, Carl Hampus & Nystedt, Paul, 2012. "Do Socioeconomic Factors Really Explain Income-Related Inequalities in Health? Applying a Twin Design to Standard Decomposition Analysis," Working Papers 2012:21, Lund University, Department of Economics.
    4. Erreygers, Guido & Clarke, Philip & Van Ourti, Tom, 2012. "“Mirror, mirror, on the wall, who in this land is fairest of all?”—Distributional sensitivity in the measurement of socioeconomic inequality of health," Journal of Health Economics, Elsevier, vol. 31(1), pages 257-270.
    5. Erreygers, Guido & Van Ourti, Tom, 2011. "Measuring socioeconomic inequality in health, health care and health financing by means of rank-dependent indices: A recipe for good practice," Journal of Health Economics, Elsevier, vol. 30(4), pages 685-694, July.
    6. repec:ifs:fistud:v:38:y:2017:i::p:445-468 is not listed on IDEAS
    7. Heckley, Gawain A. & Gerdtham, Ulf-G. & Kjellsson, Gustav, 2014. "A New Approach to Decomposition of a Bivariate Rank Dependent Index Using Recentered Influence Function Regression," Working Papers 2014:36, Lund University, Department of Economics, revised 01 Apr 2015.
    8. Joan Costa‐Font & Edward C. Norton & Luigi Siciliani & Vincenzo Carrieri & Cinzia Di Novi & Cristina Elisa Orso, 2017. "Home Sweet Home? Public Financing and Inequalities in the Use of Home Care Services in Europe," Fiscal Studies, Institute for Fiscal Studies, vol. 38, pages 445-468, September.
    9. Carrieri, V. & Wuebker, A., 2012. "Assessing inequalities in preventive care use in Europe: A special case of health-care inequalities?," Health, Econometrics and Data Group (HEDG) Working Papers 12/25, HEDG, c/o Department of Economics, University of York.
    10. Vincenzo Carrieri & Ansgar Wübker, 2012. "Assessing Inequalities in Preventive Care Use in Europe," Ruhr Economic Papers 0371, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. repec:zbw:rwirep:0371 is not listed on IDEAS

    More about this item

    Keywords

    health inequalities; socioeconomic inequality; concentration index; binary variables;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I10 - Health, Education, and Welfare - - Health - - - General

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