© 2003. The Economic Society of Australia. ISSN 0013–0249 THE ECONOMIC RECORD, VOL. 79, NO. 246, SEPTEMBER, 2003, 297–305 297 Blackwell Publishing Ltd. Oxford, UK ECOR The Economic Record 0013-0249 2003 September 2003 79 3 Original Article Income and Health Concentration In Australia Economic Record Income and Health Concentration in Australia* DUANGKAMON CHOTIKAPANICH Monash University Melbourne, Australia JOHN CREEDY University of Melbourne, Melbourne, Australia SANDRA HOPKINS Curtin University of Technology, Perth, Australia This paper measures the concentration of ill-health among income groups in Australia using health survey data from 1989–90 (Australian Bureau of Statistics 1991) and 1995 (Australian Bureau of Statistics 1997), which contain responses on self-assessed health status and gross personal income. The technique of direct standardisation is used to control for the influence on health status of gender and age. Comparisons of the concentration of ill-health over time and between males and females and persons living in rural and urban areas are reported. For both surveys and all groups, we find that ill-health is concentrated among lower income groups. Concentration measures of ill-health are higher (in absolute terms) for men than for women. In all categories apart from women, the concentration measures fell between 1989–90 and 1995 surveys. I Introduction There is substantial evidence that persons from lower socioeconomic groups experience, on average, poorer levels of health than those in higher socio- economic groups. This general phenomenon has been found to be robust to alternative measures of socioeconomic status, such as occupational group, income and education (Feinstein 1993). At the same time, industrialised countries have experienced significant falls in mortality rates and considerable improvements in life expectancy. The finding that persons from lower socioeconomic groups have not shared equally in these gains raises challenges for policy makers who seek the most effective means of achieving health improvements and addressing social justice. One way of examining the relationship between health status and income is to calculate a health concentration measure. The concentration measure is quite distinct from a measure of health in- equality, which provides only an indication of the dispersion of health status in a population. The concentration measure provides an indication of the degree to which, for example, ill-health is con- centrated in low-income groups. Importantly, a given degree of health inequality, and indeed of income inequality, may be associated with a wide range of possible degrees of health concentration. This paper presents evidence on the income- related concentration in self-assessed health status in Australia. We report measures of the concentra- tion of ill-health in Australia in the years 1989–90 and 1995 using health survey responses on self- assessed health status and income. Comparisons are also made between men and women and people * The authors acknowledge funding support from an Australian Research Council Small Grant, Curtin University of Technology. We should like to thank Jeff Borland and two referees for helpful comments on an earlier draft. Correspondence: Sandra Hopkins, Curtin University of Technology, Perth Western Australia. Tel: +61 8 9266 3410; Fax: +61 8 9266 3026. Email: hopkinss@cbs.curtin.edu.au