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Accounting for trends in health poverty: A decomposition analysis for Britain, 1991-2008

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  • Michał Brzeziński

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

Abstract

We use data from the British Household Panel Survey to analyse changes in poverty of self-reported health from 1991 to 2008. Recently introduced ordinal counterparts of the classical Foster, Greer, Thorbecke (1984) (FGT) poverty measures are used to decompose changes in self-reported health poverty over time into within-group health poverty changes and population shifts between groups. We also provide statistical inference for these ordinal FGT indices. Results suggest that the health poverty rate increased independently of health poverty threshold chosen. In case of other ordinal FGT indices, which are sensitive to depth and distribution of health poverty, results depend on the health poverty threshold. The subgroup decompositions of changes in total health poverty in Britain suggest that the most important poverty-increasing factors include a rise of both health poverty and population shares of persons cohabiting and couples with no children as well as an increase of the population of retired persons.

Suggested Citation

  • Michał Brzeziński, 2013. "Accounting for trends in health poverty: A decomposition analysis for Britain, 1991-2008," Working Papers 2013-02, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2013-02
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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP87.pdf
    File Function: First version, 2013
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    References listed on IDEAS

    as
    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Buhong Zheng, 2004. "Poverty comparisons with dependent samples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 419-428.
    3. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    4. Udo Ebert & Patrick Moyes, 2002. "A Simple Axiomatization of the Foster, Greer and Thorbecke Poverty Orderings," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(4), pages 455-473, October.
    5. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
    6. Zheng, Buhong & J. Cushing, Brian, 2001. "Statistical inference for testing inequality indices with dependent samples," Journal of Econometrics, Elsevier, vol. 101(2), pages 315-335, April.
    7. 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.
    8. Chrysanthi Hatzimasoura & Christopher J. Bennett, 2011. "Poverty Measurement with Ordinal Data," Working Papers 2011-14, The George Washington University, Institute for International Economic Policy.
    9. Doorslaer, Eddy van & Jones, Andrew M., 2003. "Inequalities in self-reported health: validation of a new approach to measurement," Journal of Health Economics, Elsevier, vol. 22(1), pages 61-87, January.
    10. Frijters, Paul & Haisken-DeNew, John P. & Shields, Michael A., 2005. "The causal effect of income on health: Evidence from German reunification," Journal of Health Economics, Elsevier, vol. 24(5), pages 997-1017, September.
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    More about this item

    Keywords

    health poverty; ordinal FGT measures; self-reported health; statistical inference; British Household Panel Survey;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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