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The Theil Index (TI) is a relative measure of inequality that considers all population subgroups. Subgroups are weighted according to their population share.

Usage

ti(pop, est, se = NULL, conf.level = 0.95, ...)

Arguments

pop

The number of people within each subgroup. Population size must be available for all subgroups.

est

The subgroup estimate. Estimates must be available for at least 85% of subgroups.

se

The standard error of the subgroup estimate. If this is missing, confidence intervals of TI cannot be calculated.

conf.level

Confidence level of the interval. Default is 0.95 (95%).

...

Further arguments passed to or from other methods.

Value

The estimated TI value, corresponding estimated standard error, and confidence interval as a data.frame.

Details

TI is calculated as the sum of products of the natural logarithm of the share of the indicator of each subgroup, the share of the indicator of each subgroup and the population share of each subgroup. TI may be easily interpreted when multiplied by 1000. For more information on this inequality measure see Schlotheuber, A., & Hosseinpoor, A. R. (2022) below.

Interpretation: Greater absolute values indicate higher levels of inequality. TI is zero if there is no inequality. TI is more sensitive to differences further from the setting average (by the use of the logarithm).

Type of summary measure: Complex; relative; weighted

Applicability: Non-ordered; more than two subgroups

Warning: The confidence intervals are approximate and might be biased. See Ahn J. et al. (2018) below for further information on the standard error formula.

References

Schlotheuber, A., & Hosseinpoor, A. R. (2022). Summary measures of health inequality: A review of existing measures and their application. International Journal of Environmental Research and Public Health, 19 (6), 3697.

Ahn J, Harper S, Yu M, Feuer EJ, Liu B, Luta G. (2018). Variance Estimation and Confidence Intervals for 11 Commonly Used Health Disparity Measures. JCO Clin Cancer Inform. Dec;2:1--19.

Examples

# example code
data(NonorderedSample)
head(NonorderedSample)
#>                                         indicator          dimension
#> 1 Births attended by skilled health personnel (%) Subnational region
#> 2 Births attended by skilled health personnel (%) Subnational region
#> 3 Births attended by skilled health personnel (%) Subnational region
#> 4 Births attended by skilled health personnel (%) Subnational region
#> 5 Births attended by skilled health personnel (%) Subnational region
#> 6 Births attended by skilled health personnel (%) Subnational region
#>          subgroup  estimate        se population setting_average
#> 1            aceh  95.11784 1.5384434  230.20508        91.59669
#> 2            bali 100.00000 0.0000000  149.46272        91.59669
#> 3 bangka balitung  97.41001 1.2676437   55.66533        91.59669
#> 4          banten  80.35694 3.5440531  451.26550        91.59669
#> 5        bengkulu  94.25756 2.7740061   70.17540        91.59669
#> 6    central java  98.56168 0.6476116 1221.94446        91.59669
#>   favourable_indicator ordered_dimension indicator_scale reference_subgroup
#> 1                    1                 0             100                  1
#> 2                    1                 0             100                  0
#> 3                    1                 0             100                  0
#> 4                    1                 0             100                  0
#> 5                    1                 0             100                  0
#> 6                    1                 0             100                  0
with(NonorderedSample,
     ti(pop = population,
        est = estimate,
        se = se
        )
     )
#>   measure estimate          se  lowerci  upperci
#> 1      ti 3.143872 0.000623933 3.142649 3.145095