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.
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Bibliographic InfoArticle provided by Springer in its journal The Journal of Economic Inequality.
Volume (Year): 8 (2010)
Issue (Month): 4 (December)
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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
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