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Circumstances and Efforts: How important is their correlation for the measurement of inequality of opportunity in health?

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  • Trannoy, Alain
  • Tubeuf, Sandy
  • Jusot, Florence

Abstract

The way to treat the correlation between circumstances and effort is a central, yet largely neglected issue in the applied literature on inequality of opportunity. This paper adopts three alternative normative ways of treating this correlation championed by Roemer, Barry and Swift and assesses their empirical relevance using survey data. We combine regression analysis with the natural decomposition of the variance to compare the relative contributions of circumstances and efforts to overall health inequality according to the different normative principles. Our results suggest that, in practice, the normative principle on the way to treat the correlation between circumstances and effort makes little difference on the relative contributions of circumstances and efforts to explained health inequality.

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File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/5065/1/jusot_tubeuf.PDF
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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/5065.

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Date of creation: Dec 2013
Date of revision:
Publication status: Published in Health Economics, 2013, Vol. 22, no. 12. pp. 1470-1495.Length: 25 pages
Handle: RePEc:dau:papers:123456789/5065

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Keywords: equality of opportunity; variance decomposition; circumstances; effort; health; inequality decomposition;

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References

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Citations

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Cited by:
  1. John E. Roemer & Alain Trannoy, 2014. "Equality of Opportunity," Levine's Working Paper Archive 786969000000000914, David K. Levine.
  2. Tubeuf, Sandy & Trannoy, Alain & Jusot, Florence & Bricard, Damien, 2013. "Inequalities of Opportunities in Health and Natural Reward: a European Perspective," Economics Papers from University Paris Dauphine 123456789/11716, Paris Dauphine University.
  3. López-Casasnovas, Guillem, 2013. "Reconsideración de las políticas fiscales y las responsabilidades en salud. Una nota /A Reconsideration of Fiscal Policies and Health Responsibilities. A Note," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 327-332, Septiembr.
  4. Jusot, Florence & Bricard, Damien, 2012. "Intergenerational transmission of health care habits in France," Economics Papers from University Paris Dauphine 123456789/10720, Paris Dauphine University.
  5. Florence Jusot & Sabine Mage & Marta Menendez, 2014. "Inequality of Opportunity in Health in Indonesia," Working Papers DT/2014/06, DIAL (Développement, Institutions et Mondialisation).
  6. Christine le Clainche & Sandy Tubeuf, 2013. "Nannying, nudging, rewarding? A discussion on the constraints and the degree of control over health status," Working Papers 1306, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.

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