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On correcting the concentration index for binary variables.

Gustav Kjellsson1, Ulf-G Gerdtham

  • 1Department of Economics, Lund University, P.O. Box 7082, SE-220 07 Lund, Sweden. gustav.kjellsson@nek.lu.se

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Summary

This study clarifies socioeconomic inequality measurement in health conditions by reconciling debates on the concentration index. The choice of index significantly impacts findings, as shown by European health data comparisons.

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Area of Science:

  • Health Economics
  • Social Epidemiology
  • Biostatistics

Background:

  • Socioeconomic inequalities in health are a major public health concern.
  • The concentration index is a common tool for measuring these inequalities.
  • Recent debates have focused on corrections to the concentration index, notably by Erreygers and Wagstaff.

Purpose of the Study:

  • To reconcile the debate between Erreygers and Wagstaff regarding corrections to the concentration index.
  • To formally define the value judgments implicit in different concentration index corrections.
  • To empirically demonstrate the impact of index choice on measuring socioeconomic inequalities in health.

Main Methods:

  • Reconciliation of theoretical arguments on concentration index corrections.
  • Formal definition of value judgments in Wagstaff's correction.
  • Empirical analysis using data from the European Survey of Health, Ageing and Retirement (SHARE).

Main Results:

  • The study clarifies the implicit value judgments in competing concentration index corrections.
  • Empirical comparisons reveal that different index choices lead to divergent conclusions about socioeconomic inequalities in health.
  • The choice of index significantly influences the measurement and interpretation of health disparities across countries.

Conclusions:

  • The choice of measurement index is critical when assessing socioeconomic inequalities in health.
  • Understanding the underlying value judgments of different indices is essential for accurate policy-relevant research.
  • Empirical evidence highlights the need for careful consideration of index selection in health inequality studies.