Advanced Search
MyIDEAS: Login to save this paper or follow this series

Equality of Opportunity: Definitions and testable conditions, with an application to income in France

Contents:

Author Info

  • Arnaud Lefranc

    ()
    (Robert Schuman CenterEuropean University Institute)

  • Nicolas Pistolesi

    ()
    (THEMA, Université de Cergy-Pontoise)

  • Alain Trannoy

    ()
    (EHESS, GREQAM IDEP)

Abstract

We offer a model of equality of opportunity that encompasses different conceptions expressed in the public debate. In addition to circumstances whose effect on outcome should be compensated and effort which represents a legitimate source of inequality, we introduce a third factor, luck, that captures the non-responsibility factors whose impact on outcome should be even-handed for equality of opportunity to be satisfied. Then, we analyse how the various definitions of equality of opportunity can be empirically identified, given data limitations and provide testable conditions. Definitions and conditions resort to standard stochastic dominance tools. Lastly, we develop an empirical analysis of equality of opportunity for income acquisition in France over the period 1979-2000 which reveals that the degree of inequality of opportunity tends to decrease and that the risk of social lotteries appears very similar across the different groups of social origin.

Download Info

If 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.
File URL: http://www.u-cergy.fr/thema/repec/2006-13.pdf
Download Restriction: no

Bibliographic Info

Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2006-13.

as in new window
Length:
Date of creation: 2006
Date of revision:
Handle: RePEc:ema:worpap:2006-13

Contact details of provider:
Postal: 33, boulevard du port - 95011 Cergy-Pontoise Cedex
Phone: 33 1 34 25 60 63
Fax: 33 1 34 25 62 33
Email:
Web page: http://thema.u-cergy.fr
More information through EDIRC

Related research

Keywords: Equality of Opportunity; Income distribution; Luck; Stochastic dominance;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, Econometric Society, vol. 54(5), pages 1243-48, September.
  2. Julian R. Betts & John E. Roemer, . "Equalizing educational opportunity through educational finance reform," Department of Economics, California Davis - Department of Economics 99-8, California Davis - Department of Economics.
  3. repec:ese:iserwp:2000-19 is not listed on IDEAS
  4. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 16(3), pages 3-30, Summer.
  5. FLEURBAEY, Marc & MANIQUET, François, . "Compensation and responsibility," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -2284, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Schütz, Gabriela & Ursprung, Heinrich W. & Wößmann, Ludger, 2008. "Education policy and equality of opportunity," Munich Reprints in Economics, University of Munich, Department of Economics 19901, University of Munich, Department of Economics.
  7. Thibault Gajdos & Eric Maurin, 2004. "Unequal Uncertainties and Uncertain Inequalities: An Axiomatic Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00085940, HAL.
  8. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, American Economic Association, vol. 95(4), pages 960-980, September.
  9. Hammond, Peter J, 1981. "Ex-ante and Ex-post Welfare Optimality under Uncertainty," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 48(191), pages 235-50, August.
  10. Roemer, John E. & Aaberge, Rolf & Colombino, Ugo & Fritzell, Johan & Jenkins, Stephen P. & Lefranc, Arnaud & Marx, Ive & Page, Marianne & Pommer, Evert & Ruiz-Castillo, Javier, 2003. "To what extent do fiscal regimes equalize opportunities for income acquisition among citizens?," Journal of Public Economics, Elsevier, Elsevier, vol. 87(3-4), pages 539-565, March.
  11. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1936, Harvard - Institute of Economic Research.
  12. Birnbaum, Michael H & Navarrete, Juan B, 1998. "Testing Descriptive Utility Theories: Violations of Stochastic Dominance and Cumulative Independence," Journal of Risk and Uncertainty, Springer, Springer, vol. 17(1), pages 49-78, October.
  13. Checchi, Daniele & Ichino, Andrea & Rustichini, Aldo, 1999. "More equal but less mobile?: Education financing and intergenerational mobility in Italy and in the US," Journal of Public Economics, Elsevier, Elsevier, vol. 74(3), pages 351-393, December.
  14. Peter A. Diamond, 1967. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparison of Utility: Comment," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 75, pages 765.
  15. Grawe, Nathan D., 2006. "Lifecycle bias in estimates of intergenerational earnings persistence," Labour Economics, Elsevier, Elsevier, vol. 13(5), pages 551-570, October.
  16. Fleurbaey, Marc, 1995. "Equal Opportunity or Equal Social Outcome?," Economics and Philosophy, Cambridge University Press, vol. 11(01), pages 25-55, April.
  17. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, Econometric Society, vol. 68(6), pages 1435-1464, November.
  18. R. Bénabou & E. Ok, . "Mobility as Progressivity: Ranking Income Processes According to Equality of Opportunity," Princeton Economic Theory Papers, Economics Department, Princeton University 00f1, Economics Department, Princeton University.
  19. Roemer, J.E., 1992. "A Pragmatic Theory of Responsibility for the Egalitarian Planner," Papers, California Davis - Institute of Governmental Affairs 391, California Davis - Institute of Governmental Affairs.
  20. Donal O'Neill & Olive Sweetman & Dirk van de gaer, 1999. "Equiality of Opportunity and Kernel Density Estimation: An Application to Intergenerational Mobility," Economics, Finance and Accounting Department Working Paper Series, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth n950999, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  21. Van de Gaer, Dirk & Schokkaert, Erik & Martinez, Michel, 2001. "Three Meanings of Intergenerational Mobility," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 68(272), pages 519-37, November.
  22. Valentino Dardanoni & Antonio Forcina, 1999. "Inference for Lorenz curve orderings," Econometrics Journal, Royal Economic Society, Royal Economic Society, vol. 2(1), pages 49-75.
  23. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  24. Beach, Charles M & Davidson, Russell, 1983. "Distribution-Free Statistical Inference with Lorenz Curves and Income Shares," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 50(4), pages 723-35, October.
  25. 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).
  26. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  27. Machina, Mark J, 1982. ""Expected Utility" Analysis without the Independence Axiom," Econometrica, Econometric Society, Econometric Society, vol. 50(2), pages 277-323, March.
  28. Chris Starmer, 2000. "Developments in Non-expected Utility Theory: The Hunt for a Descriptive Theory of Choice under Risk," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 38(2), pages 332-382, June.
  29. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  30. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, Elsevier, vol. 83(1), pages 83-107, January.
  31. Wolak, Frank A., 1989. "Testing inequality constraints in linear econometric models," Journal of Econometrics, Elsevier, Elsevier, vol. 41(2), pages 205-235, June.
  32. Bishop, John A & Formby, John P & Thistle, Paul D, 1992. "Convergence of the South and Non-South Income Distributions, 1969-1979," American Economic Review, American Economic Association, American Economic Association, vol. 82(1), pages 262-72, March.
  33. Hild, Matthias & Voorhoeve, Alex, 2004. "Equality Of Opportunity And Opportunity Dominance," Economics and Philosophy, Cambridge University Press, vol. 20(01), pages 117-145, April.
  34. Ben-Porath, Elchanan & Gilboa, Itzhak & Schmeidler, David, 1997. "On the Measurement of Inequality under Uncertainty," Journal of Economic Theory, Elsevier, Elsevier, vol. 75(1), pages 194-204, July.
  35. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 16(3), pages 59-66, Summer.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Gustavo A. Marrero & Juan G. Rodríguez, 2010. "Inequality of opportunity and growth," Working Papers 154, ECINEQ, Society for the Study of Economic Inequality.
  2. Aitor Calo, 2009. "Equality of opportunity and optimal effort decision under uncertainty," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2009-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  3. Claudia Biancotti & Giovanni D'Alessio, 2007. "Inequality and Happiness," Working Papers 75, ECINEQ, Society for the Study of Economic Inequality.
  4. Villar Notario Antonio & Calo-Blanco Aitor, 2009. "Education, Utilitarianism, and Equality of Opportunity," Working Papers, Fundacion BBVA / BBVA Foundation 201051, Fundacion BBVA / BBVA Foundation.
  5. Claudia Biancotti & Giovanni D'Alessio, 2008. "Values, inequality and happiness," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 669, Bank of Italy, Economic Research and International Relations Area.
  6. Laura Serlenga & Vito Peragine, 2007. "Higher education and equality of opportunity in Italy," Working Papers 79, ECINEQ, Society for the Study of Economic Inequality.
  7. Juan Gabriel Rodríguez, 2007. "Partial and complete equality-of-opportunity orderings," Working Papers 70, ECINEQ, Society for the Study of Economic Inequality.
  8. Juan Rodríguez, 2008. "Partial equality-of-opportunity orderings," Social Choice and Welfare, Springer, Springer, vol. 31(3), pages 435-456, October.
  9. Jacques Silber & Olivier Giovannoni & Amedeo Spadaro, 2007. "Inequality of Life Chances and the Measurement of Social Immobility," Economics Working Paper Archive, Levy Economics Institute wp_513, Levy Economics Institute.
  10. Ashish Singh, 2010. "The Effect of Family Background on Individual Wages and an Examination of Inequality of Opportunity in India," Journal of Labor Research, Springer, Springer, vol. 31(3), pages 230-246, September.
  11. Brigitte Dormont & Anne-Laure Samson, 2007. "Restrictions on the number of physicians and Intergenerational Inequalities : Experience, Time and Vintage effects in GPs’ earnings," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 07/11, HEDG, c/o Department of Economics, University of York.
  12. Pedro Rosa Dias, 2010. "Modelling opportunity in health under partial observability of circumstances," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 252-264.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ema:worpap:2006-13. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marion Oury).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.