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Inequality decomposition by population subgroups for ordinal data

Author Info

Listed author(s):
  • 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
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. Benedicte Apouey, 2007. "Measuring health polarization with self-assessed health data," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 875-894.
  2. 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.
  3. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
  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.
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Cited by:

  1. 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.
  2. 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.
  3. repec:hal:psewpa:halshs-00850014 is not listed on IDEAS
  4. 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).
  5. 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.
  6. Di Novi, C. & Piacenza, M. & Robone, S. & Turati, G., 2015. "How does fiscal decentralization affect within-regional disparities in well-being? Evidence from health inequalities in Italy," Health, Econometrics and Data Group (HEDG) Working Papers 15/23, HEDG, c/o Department of Economics, University of York.
  7. Tugce, Cuhadaroglu, 2013. "My Group Beats Your Group: Evaluating Non-Income Inequalities," SIRE Discussion Papers 2013-49, Scottish Institute for Research in Economics (SIRE).
  8. 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.
  9. repec:hal:wpaper:halshs-01357085 is not listed on IDEAS
  10. Martyna Kobus, 2014. "On the measurement of polarization for ordinal data," Working Papers 325, ECINEQ, Society for the Study of Economic Inequality.
  11. 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.
  12. 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, 09.
  13. Martyna Kobus, 2014. "Multidimensional polarization for ordinal data," Working Papers 326, ECINEQ, Society for the Study of Economic Inequality.
  14. 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.
  15. Martyna Kobus & Marcin Jakubek, 2015. "Youth unemployment and mental health: dominance approach. Evidence from Poland," IBS Working Papers 4/2015, Instytut Badan Strukturalnych.

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