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On the Welfare Evaluation of Income and Opportunity

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  • Villar Antonio

    ()
    (University of Alicante & Ivie)

Abstract

This paper provides an axiomatization of a cardinal welfare measure for the evaluation of income and opportunity. Following Roemer's (1998) formulation of equality of opportunity, we divide the society in n effort groups consisting of subsets of agents who exert a comparable degree of effort. We show that social welfare can be measured as the sum of n partial indices, one for each effort group, each of which consists of a function of the aggregate income of the group and its dispersion (measured by Theil's first inequality index).

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File URL: http://www.degruyter.com/view/j/bejte.2005.5.1/bejte.2005.5.1.1129/bejte.2005.5.1.1129.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.

Volume (Year): 5 (2005)
Issue (Month): 1 (June)
Pages: 1-21

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Handle: RePEc:bpj:bejtec:v:contributions.5:y:2005:i:1:n:3

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Cited by:
  1. Checchi, Daniele & Peragine, Vito & Serlenga, Laura, 2010. "Fair and Unfair Income Inequalities in Europe," IZA Discussion Papers 5025, Institute for the Study of Labor (IZA).
  2. Andrés Cendales, 2012. "Vote Buying, Political Patronage and Selective Plunder," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 237-276, November.
  3. Aitor Calo Blanco & J. Ignacio García Pérez, 2012. "On the welfare loss caused by inequality of opportunity," Working Papers 12.12, Universidad Pablo de Olavide, Department of Economics.
  4. Laura Serlenga & Vito Peragine, 2007. "Higher education and equality of opportunity in Italy," Working Papers 79, ECINEQ, Society for the Study of Economic Inequality.
  5. Calo-Blanco, Aitor & Villar, Antonio, 2009. "Education, Utilitarianism, and Equality of Opportunity," MPRA Paper 18720, University Library of Munich, Germany.
  6. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni dell'Istituto di Politica Economica ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  7. J. Ignacio García-Pérez & Antonio Villar, 2009. "Discrimination and Equality of Opportunity," Working Papers 09.05, Universidad Pablo de Olavide, Department of Economics.
  8. Giuseppe Pignataro, 2009. "Decomposing equality of opportunity by income sources," Economics Bulletin, AccessEcon, vol. 29(2), pages 702-711.
  9. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," Journal of Economic Inequality, Springer, vol. 8(4), pages 429-450, December.
  10. Checchi, Daniele & Peragine, Vito, 2005. "Regional Disparities and Inequality of Opportunity: The Case of Italy," IZA Discussion Papers 1874, Institute for the Study of Labor (IZA).

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