Longitudinal methods to investigate the role of health determinants in the dynamics of income-related health inequality

The usual starting point for understanding changes in income-related health inequality (IRHI) over time has been regression-based decomposition procedures for the health concentration index. However the reliance on repeated cross-sectional analysis for this purpose prevents both the appropriate specification of the health function as a dynamic model and the identification of important determinants of the transition processes underlying IRHI changes such as those relating to mortality. This paper overcomes these limitations by developing alternative longitudinal procedures to analyse the role of health determinants in driving changes in IRHI through both morbidity changes and mortality, with our dynamic modelling framework also serving to identify their contribution to long-run or structural IRHI. The approach is illustrated by an empirical analysis of the causes of the increase in IRHI in Great Britain between 1999 and 2004.