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Inequality decomposition by population subgroups for ordinal data

Author Info

  • 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.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP64.pdf
File Function: First version, 2011
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Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2011-24.

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Length: 21 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:war:wpaper:2011-24
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Keywords: ordered response health data; inequality measurement; health inequality; ordinal data; decomposition;

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Find related papers by JEL classification:
  • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
  • I1 - Health, Education, and Welfare - - Health

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  1. Bénédicte H. Apouey, 2007. "Measuring health polarization with self-assessed health data," Post-Print hal-00813542, HAL.
  2. 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.
  3. Ramses H. Abul Naga & Tarik Yalcin, 2007. "Inequality measurement for ordered response health data," LSE Research Online Documents on Economics 6538, London School of Economics and Political Science, LSE Library.
  4. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
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Cited by:

  1. Bénédicte H. Apouey & Jacques Silber, 2013. "Inequality and bi-polarization in socioeconomic status and health: Ordinal approaches," Working Papers halshs-00850014, HAL.
  2. 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".
  3. Martyna Kobus, 2014. "Multidimensional polarization for ordinal data," Working Papers 326, ECINEQ, Society for the Study of Economic Inequality.
  4. 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.
  5. repec:hal:psewpa:halshs-00850014 is not listed on IDEAS
  6. 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.
  7. Hongliang Wang & Yiwen Yu, 2016. "Increasing health inequality in China: An empirical study with ordinal data," Journal of Economic Inequality, Springer, vol. 14(1), pages 41-61, March.
  8. 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.
  9. Martyna Kobus, 2014. "On the measurement of polarization for ordinal data," Working Papers 325, ECINEQ, Society for the Study of Economic Inequality.
  10. Sonne-Schmidt, Christoffer & Tarp, Finn & Østerdal, Lars Peter, 2015. "Ordinal bivariate inequality: concepts and application to child deprivation in Mozambique," Discussion Papers of Business and Economics 1/2015, Department of Business and Economics, University of Southern Denmark.
  11. Martyna Kobus & Marcin Jakubek, 2015. "Youth unemployment and mental health: dominance approach. Evidence from Poland," IBS Working Papers 4/2015, Instytut Badan Strukturalnych.
  12. Martyna Kobus, 2015. "Polarization measurement for ordinal data," Journal of Economic Inequality, Springer, vol. 13(2), pages 275-297, June.

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