A note on the decomposition of the health concentration index.

Abstract:

:In recent work, the concentration index has been widely used as a measure of income-related health inequality. The purpose of this note is to illustrate two different methods for decomposing the overall health concentration index using data collected from a Short Form (SF-36) survey of the general Australian population conducted in 1995. For simplicity, we focus on the physical functioning scale of the SF-36. Firstly we examine decomposition 'by component' by separating the concentration index for the physical functioning scale into the ten items on which it is based. The results show that the items contribute differently to the overall inequality measure, i.e. two of the items contributed 13% and 5%, respectively, to the overall measure. Second, to illustrate the 'by subgroup' method we decompose the concentration index by employment status. This involves separating the population into two groups: individuals currently in employment; and individuals not currently employed. We find that the inequality between these groups is about five times greater than the inequality within each group. These methods provide insights into the nature of inequality that can be used to inform policy design to reduce income related health inequalities.

journal_name

Health Econ

journal_title

Health economics

authors

Clarke PM,Gerdtham UG,Connelly LB

doi

10.1002/hec.767

keywords:

subject

Has Abstract

pub_date

2003-06-01 00:00:00

pages

511-6

issue

6

eissn

1057-9230

issn

1099-1050

journal_volume

12

pub_type

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