The main purpose of this paper is to compare the decomposition properties of rank-dependent and level-dependent indicators of income-related inequality of health. We do so by focusing on the decomposition by population groups. We show that level-dependent indices have more desirable subgroup decomposability properties than rank-dependent indices. This may prove to be an important argument in favour of the use of level-dependent indices. The difference between the subgroup decomposition results of rank-dependent and level-dependent indices is illustrated by means of an empirical study using australian health and income data. We consider subgroups based on sex, age and employment status.
- d63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- i00 - Health, Education, and Welfare: General
Erreygers, G., Kessels, R., Chen, L., & Clarke, P. (2018). Subgroup Decomposability of Income-Related Inequality of Health, with an Application to Australia. Economic Record, 94(304), 39-50. https://doi.org/10.1111/1475-4932.12373