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A Unified Structural Equation Modelling Approach for the Decomposition of Rank-Dependent Indicators of Socioeconomic Inequality of Health

Kessels Roselinde and Guido Erreygers ()

No 17, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We present a unified structural equation modelling framework for the regression-based decomposition of rank-dependent indicators of socioeconomic inequality of health and compare it with a simple ordinary least squares regression. The structural equation modelling framework forms the basis for a proper use of the most prominent one- and two-dimensional decompositions and provides an argument for using the bivariate multiple regression model for two-dimensional decomposition. Within the structural equation modelling framework, the two-dimensional decomposition integrates the feedback mechanism between health and socioeconomic status and allows for different sets of determinants of these variables. We illustrate the structural equation modelling approach and its outperformance of ordinary least squares using data from the 2011 Ethiopian Demographic and Health Survey.

Keywords: Children; Econometric models (Economic development); Equality and inequality; Health; Regression analysis (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea
Date: 2015
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Related works:
Working Paper: A unified structural equation modeling approach for the decomposition of rank-dependent indicators of socioeconomic inequality of health (2014) Downloads
Working Paper: A unified structural equation modeling approach for the decomposition of rank-dependent indicators of socioeconomic inequality of health (2014) Downloads
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