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Inequality decomposition by population subgroups for ordinal data

Author

Listed:
  • Martyna Kobus

    () (Faculty of Economic Sciences, University of Warsaw)

  • Piotr Miłoś

    () (Faculty of Mathematics, Informatics and Mechanics, University of Warsaw)

Abstract

We present a class of decomposable inequality indices for ordinal data (e.g. self-reported health survey). It is characterized by well-known inequality axioms (e.g. scale invariance) and a decomposability axiom which states that an index can be represented as a function of inequality values in subgroups and subgroup sizes. The only decomposable indices are strictly monotonic transformations of the weighted average of frequencies in categories. Among the indices proposed in the literature only the absolute value index (Abul Naga and Yalcin, 2008; Apouey, 2007) is decomposable. As an empirical illustration we calculate regional contributions to overall health inequality in Switzerland.

Suggested Citation

  • Martyna Kobus & Piotr Miłoś, 2011. "Inequality decomposition by population subgroups for ordinal data," Working Papers 2011-24, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2011-24
    as

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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP64.pdf
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    References listed on IDEAS

    as
    1. Benedicte Apouey, 2007. "Measuring health polarization with self-assessed health data," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 875-894.
    2. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    3. Abul Naga, Ramses H. & Yalcin, Tarik, 2008. "Inequality measurement for ordered response health data," Journal of Health Economics, Elsevier, vol. 27(6), pages 1614-1625, December.
    4. Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Abul Naga, Ramses H. & Stapenhurst, Christopher, 2015. "Estimation of inequality indices of the cumulative distribution function," Economics Letters, Elsevier, vol. 130(C), pages 109-112.
    2. Rodriguez Takeuchi Laura, 2015. "Intra-Household Inequalities in Child Rights and Well-Being: A Barrier to Progress?," WIDER Working Paper Series 012, World Institute for Development Economic Research (UNU-WIDER).
    3. Tugce, Cuhadaroglu, 2013. "My Group Beats Your Group: Evaluating Non-Income Inequalities," SIRE Discussion Papers 2013-49, Scottish Institute for Research in Economics (SIRE).
    4. Cinzia Di Novi & Massimiliano Piacenza & Silvana Robone & Gilberto Turati, 2015. "How does fiscal decentralization affect within-regional disparities in well-being? Evidence from health inequalities in Italy," Working Papers 2015:21, Department of Economics, University of Venice "Ca' Foscari".
    5. Martyna Kobus, 2014. "On the measurement of polarization for ordinal data," Working Papers 325, ECINEQ, Society for the Study of Economic Inequality.
    6. Christoffer Sonne-Schmidt & Finn Tarp & Lars Peter Østerdal, 2016. "Ordinal Bivariate Inequality: Concepts and Application to Child Deprivation in Mozambique," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 559-573, September.
    7. Martyna Kobus, 2014. "Multidimensional polarization for ordinal data," Working Papers 326, ECINEQ, Society for the Study of Economic Inequality.
    8. Tugce Cuhadaroglu, 2013. "My Group Beats Your Group: Evaluating Non-Income Inequalities," Discussion Paper Series, Department of Economics 201308, Department of Economics, University of St. Andrews.
    9. Martyna Kobus & Marcin Jakubek, 2015. "Youth unemployment and mental health: dominance approach. Evidence from Poland," IBS Working Papers 4/2015, Instytut Badan Strukturalnych.
    10. Frank A Cowell & Martyna Kobus & Radoslaw Kurek, 2017. "Welfare and Inequality Comparisons for Uni- and Multi-dimensional Distributions of Ordinal Data," STICERD - Public Economics Programme Discussion Papers 31, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    11. repec:hal:psewpa:halshs-00850014 is not listed on IDEAS
    12. repec:eme:reinzz:s1049-258520160000024008 is not listed on IDEAS
    13. Bénédicte H. Apouey & Jacques Silber, 2016. "Performance and Inequality in Health: A Comparison of Child and Maternal Health across Asia," Research on Economic Inequality,in: Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting, volume 24, pages 181-214 Emerald Publishing Ltd.
    14. Gordon Anderson & Thomas Fruehauf & Maria Grazia Pittau & Roberto Zelli, 2015. "Evaluating Progress Toward an Equal Opportunity Goal: Assessing the German Educational Reforms of the First Decade of the 21st Century," Working Papers tecipa-552, University of Toronto, Department of Economics.
    15. Bénédicte H. Apouey & Jacques Silber, 2013. "Inequality and bi-polarization in socioeconomic status and health: Ordinal approaches," Working Papers halshs-00850014, HAL.
    16. Hongliang Wang & Yiwen Yu, 2016. "Increasing health inequality in China: An empirical study with ordinal data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 41-61, March.
    17. Bénédicte H. Apouey & Jacques Silber, 2016. "Performance and Inequality in Health: A Comparison of Child and Maternal Health across Asia," Working Papers halshs-01357085, HAL.
    18. Martyna Kobus, 2015. "Polarization measurement for ordinal data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(2), pages 275-297, June.
    19. repec:spr:metron:v:75:y:2017:i:2:d:10.1007_s40300-017-0112-4 is not listed on IDEAS
    20. repec:spr:joecth:v:65:y:2018:i:1:d:10.1007_s00199-016-1011-2 is not listed on IDEAS

    More about this item

    Keywords

    ordered response health data; inequality measurement; health inequality; ordinal data; decomposition;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I1 - Health, Education, and Welfare - - Health

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