The ratio of expansion to compression: A new measure of lifespan disparity

Abstract

Numerous studies have shown that high life expectancy is closely related to low life disparity. Unlike life expectancy, which can be increased by mortality decline at any age, life disparity can either increase or decrease in response to mortality decline. Disparity can thus be decomposed into two opposite components, called compression and expansion, depending on the effect of mortality decline on the age distribution of mortality. Without specifying the two components, various conventional measures of disparity may provide misleading information relating to how life chances in society can be equalized. Based on the relevant properties of changes in disparity, we develop a new measure of disparity—the ratio of expansion to compression—that can account for the relative importance of the two components. This simple measure not only provides a clear view of the evolution of disparity, but also permits changes in disparity related to mortality decline to be interpreted in a consistent manner similar to life expectancy. Simulations and an empirical analysis demonstrated the advantages of this new measure over conventional measures of disparity.