ON THE CARDINAL MEASUREMENT OF HEALTH INEQUALITY WHEN ONLY ORDINAL INFORMATION IS AVAILABLE ON INDIVIDUAL HEALTH STATUS

This paper suggests new indices of health inequality which may be used when only ordinal information is available on individual health status. We borrow ideas from the literature on the measurement of occupational or residential segregation and show that indices of ordinal segregation which have been recently proposed may be also applied to the measurement of health inequality. We also prove that these indices satisfy four axioms introduced to measure inequality with ordered response health data so that the new indices presented in this paper are consistent with the inequality ordering proposed by Allison and Foster. We also suggest an extension of the family of indices proposed by Abul Naga and Yalcin. Copyright (c) 2011 John Wiley & Sons, Ltd.