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. 2021 Sep 7;15:100915. doi: 10.1016/j.ssmph.2021.100915

Table 2.

Theoretical evaluations and empirical patterns of the four income definitions.

Approach Conceptual evaluation Empirical differences and similarities Gender differences
Conceptualizations
Household (disposable)
  • (1)

    Considers economies of scales;

  • (2)

    Better reflects material conditions;

  • (3)

    Better captures absolute income;

  • (4)

    Unpartnered and unemployed individuals fall into lower income groups.

  • (1)

    Larger mortality inequalities at working ages are found when individual income is used than when household income is used; (2) Larger mortality inequalities are found at older ages when household income is used than when individual income is used;

  • (3)

    The age patterns of inequalities are similar for both, but the use of household income leads to later peaks.

  • (1)

    For women, larger differences in life expectancy are found when household income is used than when individual income is used; for men, when population-wide grouping is applied, larger differences in life expectancy are found when individual income is used than when household income is used;

  • (2)

    Individual income ranks the lowest-quintile women higher than some higher-income groups in recent periods (due to differing household composition);

  • (3)

    The period patterns for men are similar for both, but the patterns are different for women;

  • (4)

    Differences in inequality levels depending on the income definitions are larger for women and for men.

Individual
  • (1)

    Better reflects earning ability and relative social position;

  • (2)

    Not able to capture absolute income for partnered individuals who do not work

Operationalizations
Population-wide grouping
  • (1)

    Better reflects absolute income (not wealth or resources);

  • (2)

    Young and old individuals are less likely to be in high-income groups, and individuals at prime working ages are more likely to be in higher-income groups.

  • (1)

    Larger mortality inequalities across ages are found when population-wide grouping is used than when age-specific grouping is used;

  • (2)

    Larger differences in life expectancy are found when population-wide grouping is used than when age-specific grouping is used;

  • (3)

    The age patterns are similar for both.

  • (1)

    For individual income, the gaps in life expectancy are much smaller when age-specific grouping is used than when population-wide grouping is used, and population-wide grouping ranks the lowest-quintile women much higher. These patterns are not found for men;

  • (2)

    The period patterns are similar for men, but are different for women;

  • (3)

    Differences in inequality levels depending on the income income definitions are larger for women and for men.

Age-specific grouping
  • (1)

    Better reflects relative positions on income and social ladders.