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Measuring inequalities in health in the presence of multiple‐category morbidity indicators

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  • Adam Wagstaff
  • Eddy Van Doorslaer

Abstract

This paper considers the problems which arise in seeking to measure socioeconomic inequalities in health when the health indicator is a categorical variable, such as self‐assessed health. It shows that the standard approach—which involves dichotomizing the categorical variable—is unreliable. The degree of measured inequality is found to depend on the cut‐off point chosen and the choice of cut‐off point to affect the conclusions one can reach about trends in or differences in health inequality. The paper goes on to propose an alternative approach which involves constructing a latent health variable and then measuring inequalities in this latent variable by means of a variant of the health concentration curve.

Suggested Citation

  • Adam Wagstaff & Eddy Van Doorslaer, 1994. "Measuring inequalities in health in the presence of multiple‐category morbidity indicators," Health Economics, John Wiley & Sons, Ltd., vol. 3(4), pages 281-291, July.
    • Handle: RePEc:wly:hlthec:v:3:y:1994:i:4:p:281-291
    DOI: 10.1002/hec.4730030409
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    2. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
    3. Wagstaff, Adam & Paci, Pierella & van Doorslaer, Eddy, 1991. "On the measurement of inequalities in health," Social Science & Medicine, Elsevier, vol. 33(5), pages 545-557, January.
    4. Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
    5. Stephen P. Jenkins, 1991. "Income Inequality and Living standards: Changes in the 1970s and 1980s," Fiscal Studies, Institute for Fiscal Studies, vol. 12(1), pages 1-28, February.
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