Subgroup Decomposability of Income-Related Inequality of Health, with an Application to Australia

Guido Erreygers; Roselinde Kessels; Linkun Chen; Philip Clarke

doi:10.1111/1475-4932.12373

Subgroup Decomposability of Income-Related Inequality of Health, with an Application to Australia

Guido Erreygers^*, Roselinde Kessels, Linkun Chen, Philip Clarke

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

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.

Original language	English
Pages (from-to)	39-50
Number of pages	12
Journal	Economic Record
Volume	94
Issue number	304
DOIs	https://doi.org/10.1111/1475-4932.12373
Publication status	Published - Mar 2018
Externally published	Yes

JEL classifications

d63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
i00 - Health, Education, and Welfare: General

Access to Document

10.1111/1475-4932.12373Licence: CC BY

Cite this

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title = "Subgroup Decomposability of Income-Related Inequality of Health, with an Application to Australia",

abstract = "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.",

author = "Guido Erreygers and Roselinde Kessels and Linkun Chen and Philip Clarke",

note = "Data come from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, wave 13. More information on the HILDA database can be found here: https://melbourneinstitute.unimelb.edu.au/hilda/.",

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AU - Erreygers, Guido

AU - Kessels, Roselinde

AU - Chen, Linkun

AU - Clarke, Philip

N1 - Data come from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, wave 13. More information on the HILDA database can be found here: https://melbourneinstitute.unimelb.edu.au/hilda/.

PY - 2018/3

Y1 - 2018/3

N2 - 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.

AB - 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.

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DO - 10.1111/1475-4932.12373

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JO - Economic Record

JF - Economic Record

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