Skip to main content

Advertisement

Log in

Allowing for heterogeneity in the decomposition of measures of inequality in health*

  • Published:
The Journal of Economic Inequality Aims and scope Submit manuscript

Abstract

This paper shows how recently developed regression-based methods for the decomposition of health inequality can be extended to incorporate heterogeneity in the responses of health to the explanatory variables. We illustrate our method with an application to the GHQ measure of psychological well-being taken from the British Household Panel Survey. The results suggest that there is an important degree of heterogeneity in the association of health to explanatory variables across birth cohorts and genders which, in turn, accounts for a substantial percentage of the inequality in observed health.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Bowling, A.: Measuring Health. A Review of Quality of Life Measurement Scales, OUP, Milton Keynes, 1991.

    Google Scholar 

  2. Ferrer-i-Carbonell, A. and Van Praag, B.: Income satisfaction inequality and its causes, Journal of Economic Inequality 1 (2003), 107–127.

    Article  Google Scholar 

  3. Fleurbaey, M.: Health, equity and social welfare, CATT, IDEP, (mimeo), Université de Pau et des Pays de l'Adour, 2004.

  4. Fields, G.S.: Accounting for income inequality and its change: A new method, with applications to the distribution of earnings in the United States, In: S.W. Polachek (ed.), Worker Well Being and Public Policy, Research in Labor Economics Series 22, Elsevier, 2003.

  5. Gakidou, E., Murray, C. and Frenk, J.: Defining and measuring health inequality, Bulletin of the World Health Organisation 78 (2000), 42–52.

    Google Scholar 

  6. Goldberg, D. and Williams, P.: A User's Guide to the General Health Questionnaire, Nfer-Nelson, Windsor, 1988.

    Google Scholar 

  7. Hauck, K. and Rice, N.: Health mobility in the UK: A longitudinal analysis of psychological well-being, (mimeo), University of York, 2003.

  8. Heckman, J.: Micro data, heterogeneity, and the evaluation of public policy: Nobel lecture, Journal of Political Economy 109 (2001), 673–748.

    Article  Google Scholar 

  9. Kakwani, N.C.: Income Inequality and Poverty. Methods of Estimation and Policy Implications, Oxford University Press, Oxford, 1980.

    Google Scholar 

  10. Koenker, R. and Bassett, G.: Robust tests for heteroscedasticity based on regression quantiles, Econometrica 50 (1982), 43–61.

    Article  Google Scholar 

  11. Kolenikov, S. and Shorrocks, A.: A decomposition analysis of regional poverty in Russia, Review of Development Economics 9 (2005), 25–46.

    Article  Google Scholar 

  12. Lambert, P.: The Distribution and Redistribution of Income. A Mathematical Analysis, 2nd edn., Manchester University Press, Manchester, 1993.

    Google Scholar 

  13. Le Grand, J.: An international comparison of ages-at-death, In: J. Fox (ed.), Health Inequalities in European Countries, Gower, Aldershot, 1989.

    Google Scholar 

  14. Likert, R.: A technique for the development of attitude scales, Educational and Psychological Measurement 12 (1952), 313–315.

    Google Scholar 

  15. Morris, S., Sutton, M. and Gravelle, H.: Inequity and inequality in the use of health care in England, CHE Technical Paper Series, 27, 2003.

  16. Oaxaca, R.L.: Male–female wage differentials in urban labor markets, International Economic Review 14 (1973), 693–709.

    Article  Google Scholar 

  17. Rao, V.M.: Two decompositions of concentration ratio, Journal of the Royal Statistical Society. Series A(General) 132 (1969), 418–425.

    Article  Google Scholar 

  18. Shorrocks, A.: Decomposition procedures for distributional analysis: A unified framework based on the Shapley Value, Manuscript, University of Essex, 1999.

  19. Silber, J.: On inequality before death and life table summary measures, Genus 44 (1988), 25–39.

    Google Scholar 

  20. Taylor, M.F., Brice, J., Buck, N. and Prentice, E. (eds.): British Household Panel Survey User Manual, University of Essex, Colchester, 1998.

  21. Van Doorslaer, E. and Jones, A.: Inequalities in self-reported health: Validation of a new approach to measurement, Journal of Health Economics 22 (2003), 61–87.

    Article  Google Scholar 

  22. Van Doorslaer, E. and Koolman, X.: Exploring the differences in income-related health inequalities across European countries, Health Economics 13 (2004), 609–628.

    Article  Google Scholar 

  23. Van Doorslaer, E., Wagstaff, A. and Bleichrodt, H. et al.: Income-related inequalities in health: Some international comparisons, Journal of Health Economics 16 (1997), 93–112.

    Article  Google Scholar 

  24. Wagstaff, A. and van Doorslaer, E.: Measuring inequalities in health in the presence of multiple-category morbidity indicators, Health Economics 3 (1994), 281–291.

    Google Scholar 

  25. Wagstaff, A., van Doorslaer, E. and Paci, P.: Equity in the finance and delivery of health care: Some tentative cross-country comparisons, Oxford Review of Economic Policy 5 (1989), 89–112.

    Google Scholar 

  26. Wagstaff, A., Paci, P. and van Doorslaer, E.: On the measurement of inequalities in health, Social Science and Medicine 33 (1991), 545–557.

    Article  Google Scholar 

  27. Wagstaff, A., van Doorslaer, E. and Watanabe, N.: On decomposing the causes of health sector inequalities with an application to malnutrition inequalities in Vietnam, Journal of Econometrics 112 (2003), 207–223.

    Article  Google Scholar 

  28. Weich, S., Lewis, G. and Jenkins, S.P.: Income inequality and the prevalence of common mental disorders in Britain, British Journal of Psychiatry 178 (2001), 222–227.

    Article  Google Scholar 

  29. Wildman, J.: Income related inequalities in mental health in Great Britain: Analysing the causes of health inequality over time, Journal of Health Economics 22 (2003), 295–312.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ángel López Nicolás.

Additional information

*Data from the British Household Panel Survey (BHPS) were supplied by the ESRC Data Archive. Neither the original collectors of the data nor the Archive bear any responsibility for the analysis or interpretations presented here. This chapter derives from the project “The dynamics of income, health and inequality over the lifecycle” (known as the ECuity III Project), which is funded in part by the European Community's Quality of Life and Management of Living Resources programme (contract QLK6-CT-2002-02297) and the project “La dinámica del estado de salud y los factores socieconómicos a lo largo del ciclo vital. Implicaciones para las políticas públicas”, which is supported by the Fundación BBVA.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Jones, A.M., López Nicolás, Á. Allowing for heterogeneity in the decomposition of measures of inequality in health*. J Econ Inequal 4, 347–365 (2006). https://doi.org/10.1007/s10888-005-9019-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10888-005-9019-z

Key words

JEL Classifications

Navigation