On correcting the concentration index for binary variables

Gustav Kjellsson and Ulf-G. Gerdtham

Journal of Health Economics, 2013, vol. 32, issue 3, 659-670

Abstract: This article discusses measurement of socioeconomic inequalities in the prevalence of a health condition, in response to the recent exchange between Guido Erreygers and Adam Wagstaff, in which they discuss the merits of their own corrections to the frequently used concentration index. We first reconcile their debate and discuss the value judgments implicit in their indices. Next, we provide a formal definition of the previously undefined value judgment in Wagstaff's correction. Finally, we show empirically that the choice of index matters, as illustrated by comparisons between countries using data from the European Survey of Health, Ageing and Retirement.

Keywords: Health inequality; Socioeconomic inequality; Concentration index; Binary variables (search for similar items in EconPapers)
JEL-codes: D63 I10 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (40)

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Working Paper: Correcting the Concentration Index for Binary Variables (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:32:y:2013:i:3:p:659-670

DOI: 10.1016/j.jhealeco.2012.10.012

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