We introduce a general decomposition method applicable to all forms of bivariate rank dependent indices of socioeconomic inequality in health, including the concentration index. The technique is based on recentered influence function regression and requires only the application of OLS to a transformed variable with similar interpretation. Our method requires few identifying assumptions to yield valid estimates in most common empirical applications, unlike current methods favoured in the literature. Using the Swedish Twin Registry and a within twin pair fixed effects identification strategy, our new method finds no evidence of a causal effect of education on income-related health inequality.
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.
Self-reported data on health care use is a key input in a range of studies. However, the length of recall period in self-reported health care questions varies between surveys, and this variation may affect the results of the studies. This study uses a large survey experiment to examine the role of the length of recall periods for the quality of self-reported hospitalization data by comparing registered with self-reported hospitalizations of respondents exposed to recall periods of one, three, six, or twelve months. Our findings have conflicting implications for survey design, as the preferred length of recall period depends on the objective of the analysis. For an aggregated measure of hospitalization, longer recall periods are preferred. For analysis oriented more to the micro-level, shorter recall periods may be considered since the association between individual characteristics (e.g., education) and recall error increases with the length of the recall period.
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