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Trends in inequality of opportunity in health over the life cycle: The role of early-life conditions

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  • Kovacic, Matija
  • Orso, Cristina Elisa

Abstract

This paper explores the evolution of inequality of opportunity in the prevalence of chronic diseases along the life cycle and across different birth cohorts for individuals aged 50 or older and residing in 13 European countries. We adopt an ex-ante parametric approach and rely on the dissimilarity index as our reference inequality metric. In addition to a commonly used set of circumstances, we pay particular attention to the role of adverse early-life conditions, such as the experience of harm and the quality of the relationship with parents. In order to quantify the relative importance of each circumstance, we apply the Shapley inequality decomposition method. Our results suggest that inequality of opportunity in health is not stable over the life cycle - it is generally lower at younger ages and then monotonically increases. Moreover, it varies between different birth cohorts and is generally higher for younger individuals than for older age groups. Finally, the contribution of adverse early life conditions ranges between 25% and 45%, which is comparable to the share of socio-economic circumstances but significantly higher than the relative contribution of other demographic characteristics, especially at younger ages.

Suggested Citation

  • Kovacic, Matija & Orso, Cristina Elisa, 2022. "Trends in inequality of opportunity in health over the life cycle: The role of early-life conditions," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 60-82.
  • Handle: RePEc:eee:jeborg:v:201:y:2022:i:c:p:60-82
    DOI: 10.1016/j.jebo.2022.07.018
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    1. Daniel Graeber & Viola Hilbert & Johannes König, 2023. "Inequality of Opportunity in Wealth: Levels, Trends, and Drivers," CEPA Discussion Papers 69, Center for Economic Policy Analysis.

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    More about this item

    Keywords

    Inequality of opportunity; Health; Life cycle; Adverse early-life conditions; Decomposition;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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