Is the wealth index a proxy for consumption expenditure? A systematic review

Laura D Howe · James Hargreaves · Sabine Gabrysch · SHARON R A HUTTLY

196 citations0/0 files storedJournal of Epidemiology & Community Health

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Income, Poverty, and Inequality Health disparities and outcomes Public Health and Social Inequalities

Abstract

BACKGROUND: Many epidemiological studies require a measure of socioeconomic position. The monetary measure preferred by economists is consumption expenditure; the wealth index has been proposed as a reliable, simple alternative to expenditure and is extensively used. METHODS: A systematic review was conducted of the agreement between wealth indices and consumption expenditure, summarising the agreement and exploring factors affecting agreement. RESULTS: Seventeen studies using 36 datasets met the inclusion criteria. Of these, 22 demonstrated weak agreement, 10 moderate agreement, and four strong agreement. There was some evidence that agreement is higher: in middle-income settings; in urban areas; for wealth indices with a greater number of indicators; and for wealth indices including a wider range of indicators. CONCLUSIONS: The wealth index is mostly a poor proxy for consumption expenditure.

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References

2008Cochrane Handbook for Systematic Reviews of Interventions 2001Estimating wealth effects without expenditure data—or tears: An application to educational enrollments in states of India 1999Improving the quality of reports of meta-analyses of randomised controlled trials: the QUOROM statement 1960A Theory of the Consumption Function 2002Guidelines for Constructing Consumption Aggregates for Welfare Analysis 2001A glossary for social epidemiology 2003Exploring Alternative Measures of Welfare in the Absence of Expenditure Data 2005Measuring inequality with asset indicators

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