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Unfair inequalities in France: A regional comparison

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  • CARPANTIER, Jean-François

    ()
    (Université catholique de Louvain, IRES, Belgium; CREA, University of Luxembourg)

  • SAPATA, Christelle

    ()
    (FUSL, Belgium; Universitat Autonoma de Barcelona, Spain)

Abstract

This paper proposes a regional comparison of ex-post inequality of opportunity in France by measuring, within each region, the inequality between individuals exerting the same effort. According to the concept of equality of opportunity, inequalities due to factors for which the individual is not responsible are unfair and should be removed but inequalities due to factors for which the individual can be held responsible (effort) are fair and should be preserved. Therefore, our analysis defends a responsibility-sensitive egalitarianism whose aim is to show whether (1) regions reward equally effort, (2) inequality of opportunity is equally distributed among regions and (3) it is correlated with income inequality. In this paper, we use a direct measure of effort to measure ex-post inequality of opportunity across regions in France. To this end, we define a fair income that fulfills ex-post equality of opportunity requirements. Unfairness is measured by an unfair Gini based on the distance between the actual income and the fair income. Our findings reveal that regions display differences in the magnitude of ex- post inequality of opportunity and this is due to differences in reward schemes and differences in the impact of the non responsibility factors of income. As a consequence, this papers motivates decentralized policies to solve the problem of unequal opportunities in France. Finally, the positive correlation between income inequality and inequality of opportunity confirms previous results given in the literature.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2012038.

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Date of creation: 11 Oct 2012
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Handle: RePEc:cor:louvco:2012038

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Related research

Keywords: inequality of opportunity; fairness; regional inequalities;

References

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  1. Alain Trannoy & Sandy Tubeuf & Florence Jusot & Marion Devaux, 2010. "Inequality of opportunities in health in France: a first pass," Health Economics, John Wiley & Sons, Ltd., vol. 19(8), pages 921-938, August.
  2. Francois Bourguignon & Francisco H.B. Ferreira & Marta Menéndez, 2005. "Inequality of Opportunity in Brazil," Ibero America Institute for Econ. Research (IAI) Discussion Papers 133, Ibero-America Institute for Economic Research.
  3. Cogneau, Denis & Mesplé-Somps, Sandrine, 2008. "Inequality of Opportunity for Income in Five Countries of Africa," Economics Papers from University Paris Dauphine 123456789/4320, Paris Dauphine University.
  4. Arnaud Lefranc & Nicolas Pistolesi & Alain Trannoy, 2006. "Inequality of opportunities vs. inequality of outcomes: Are Western societies all alike?," Working Papers 54, ECINEQ, Society for the Study of Economic Inequality.
  5. Francisco H. G. Ferreira & Jérémie Gignoux, 2011. "The Measurement Of Inequality Of Opportunity: Theory And An Application To Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 622-657, December.
  6. 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).
  7. André Decoster & Peter Haan, 2010. "Empirical Welfare Analysis in Random Utility Models of Labour Supply," SOEPpapers on Multidisciplinary Panel Data Research 340, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. John E. Roemer & Rolf Aaberge & Ugo Colombino & Johan Fritzell & Stephen P. Jenkins & Ive Marx & Marianne Page & Evert Pommer & Javier Ruiz-Castillo & Maria Jesus SanSegundo & Torben Tranaes & Gert G., 2000. "To what Extent do Fiscal Regimes Equalize Opportunities for Income Acquisition Among citizens?," Discussion Papers 272, Research Department of Statistics Norway.
  9. Michel Forsé & Maxime Parodi, 2011. "La perception des inégalités en France depuis dix ans," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 5-32.
  10. Combes, Pierre-Philippe & Lafourcade, Miren & Thisse, Jacques-François & Toutain, Jean-Claude, 2008. "The Rise and Fall of Spatial Inequalities in France: a Long-Run Perspective," CEPR Discussion Papers 7017, C.E.P.R. Discussion Papers.
  11. Nicolas Pistolesi, 2009. "Inequality of opportunity in the land of opportunities, 1968–2001," Journal of Economic Inequality, Springer, vol. 7(4), pages 411-433, December.
  12. François Bourguignon & Francisco H.G. Ferreira & Marta Menéndez, 2003. "Inequality of Outcomes and Inequality of Opportunities in Brazil," William Davidson Institute Working Papers Series 2003-630, William Davidson Institute at the University of Michigan.
  13. Vitorocco Peragine, . "Measuring and Implementing Equality of Opportunity for Income," Discussion Papers 98/11, Department of Economics, University of York.
  14. Florence Jusot & Sandy Tubeuf & Alain Trannoy, 2010. "Effort or Circumstances: Does the Correlation Matter for Inequality of Opportunity in Health?," Working Papers DT33, IRDES institut for research and information in health economics, revised Jul 2010.
  15. Olivier Godechot, 2011. "Finance and the rise in inequalities in France," Working Papers halshs-00584881, HAL.
  16. Björklund, Anders & Jäntti, Markus & Roemer, John E., 2011. "Equality of Opportunity and the Distribution of Long-Run Income in Sweden," IZA Discussion Papers 5466, Institute for the Study of Labor (IZA).
  17. Arnaud Lefranc & Alain Trannoy, 2004. "Intergenerational earnings mobility in France : Is France more mobile than the US ?," IDEP Working Papers 0401, Institut d'economie publique (IDEP), Marseille, France, revised Feb 2004.
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Citations

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Cited by:
  1. DEHEZ, Pierre & POUKENS, SOPHIE, 2013. "The Shapley value as a guide to FRAND licensing agreements," CORE Discussion Papers 2013012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. WANG, Shin-Huei & BAUWENS, Luc & HSIAO, Cheng, 2012. "Forecasting long memory processes subject to structural breaks," CORE Discussion Papers 2012048, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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