Subgroup Decomposability of Incomeâ€ Related Inequality of Health, with an Application to Australia
Guido Erreygers (),
Linkun Chen and
The Economic Record, 2018, vol. 94, issue 304, 39-50
The main purpose of this paper is to compare the decomposition properties of rankâ€ dependent and levelâ€ dependent indicators of incomeâ€ related inequality of health. We do so by focusing on the decomposition by population groups. We show that levelâ€ dependent indices have more desirable subgroup decomposability properties than rankâ€ dependent indices. This may prove to be an important argument in favour of the use of levelâ€ dependent indices. The difference between the subgroup decomposition results of rankâ€ dependent and levelâ€ dependent indices is illustrated by means of an empirical study using Australian health and income data. We consider subgroups based on sex, age and employment status.
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Persistent link: https://EconPapers.repec.org/RePEc:bla:ecorec:v:94:y:2018:i:304:p:39-50
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