Measuring inequality of opportunity through between-group inequality components
AbstractOpportunity egalitarians support rich-to-poor redistribution whenever this allows for the compensation of income disparities due to non-responsible choices (circum- stances). In this paper we investigate the measurement of opportunity inequality within Roemer's (1993) pragmatic theory where equally subgroup ranked individuals are assumed to be equally responsible. Given entropy-based, deprivation-based and welfaristic inequality decomposition procedures, we show that the between-group Gini index - obtained from the two-components decomposition (Dagum 1997) - is the only between-group inequality index satisfying the Pigou-Dalton principle of transfer as reformulated for opportunity egalitarianism.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal The Journal of Economic Inequality.
Volume (Year): 8 (2010)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://springerlink.metapress.com/link.asp?id=111137
Inequality; Opportunity; Decomposition;
Other versions of this item:
- Abatemarco, Antonio, 2008. "Measuring Inequality of Opportunity through Between-Group Inequality Components," IRISS Working Paper Series 2008-11, IRISS at CEPS/INSTEAD.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
- Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 47(3), pages 521-31, April.
- Elbers, Chris & Lanjouw, Peter & Mistiaen, Johan A. & Ozler, Berk, 2005. "Re-interpreting sub-group inequality decompositions," Policy Research Working Paper Series 3687, The World Bank.
- Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-31.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Hey, John D & Lambert, Peter J, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 567-73, November.
- Stéphane Mussard & Luc Savard, 2012. "The Gini multi-decomposition and the role of Gini's transvariation: application to partial trade liberalization in the Philippines," Applied Economics, Taylor & Francis Journals, vol. 44(10), pages 1235-1249, April.
- John Weymark, 2003.
"Generalized Gini Indices of Equality of Opportunity,"
Journal of Economic Inequality,
Springer, vol. 1(1), pages 5-24, April.
- John A. Weymark, 2001. "Generalized Gini Indices of Equality of Opportunity," Vanderbilt University Department of Economics Working Papers 0114, Vanderbilt University Department of Economics, revised Jun 2002.
- Kolm, Serge-Christophe, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 1-13, February.
- Yitzhaki, Shlomo, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 321-24, May.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-27, September.
- Vito Peragine, 2004. "Ranking Income Distributions According to Equality of Opportunity," Journal of Economic Inequality, Springer, vol. 2(1), pages 11-30, April.
- Charles Blackorby & David Donaldson & Maria Auersperg, 1981. "A New Procedure for the Measurement of Inequality within and among Population Subgroups," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 665-85, November.
- repec:ebl:ecbull:v:4:y:2006:i:5:p:1-9 is not listed on IDEAS
- Roemer, J.E., 1992. "A Pragmatic Theory of Responsibility for the Egalitarian Planner," Papers 391, California Davis - Institute of Governmental Affairs.
- Van Kerm, Philippe, 2009.
"Generalized measures of wage differentials,"
IRISS Working Paper Series
2009-08, IRISS at CEPS/INSTEAD.
- Stéphane Mussard, 2010.
"Pair-Based Decomposable Inequality Measures,"
Cahiers de recherche
10-27, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Sohn, Christophe & Reitel, Bernard & Walther, Olivier, 2009. "Cross-border metropolitan integration in Europe (Luxembourg, Basel and Geneva)," IRISS Working Paper Series 2009-02, IRISS at CEPS/INSTEAD.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.