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Fair and unfair income inequalities in Europe

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  • Daniele Checchi

    (University of Milan)

  • Vito Peragine

    ()
    (University of Bari)

  • Laura Serlenga

    (University of Bari)

Abstract

This paper analyses the extent of income inequality and opportunity inequality in 25 European countries. The present work contributes to understanding the origin of standard income inequality, helping to identify potential institutional setups that are associated to opportunity inequality. We distinguish between ex-ante and ex-post opportunity inequality. We find that ex-ante equality of opportunity exhibits positive correlation with public expenditure in education, whereas ex-post equality of opportunity is also positively associated to union presence and to fiscal redistribution.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2010-174.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 174.

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Length: 39 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2010-174

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Keywords: Inequality of opportunity; income inequality.;

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  1. Kranich, L., 1993. "Equitable Opportunities: An Axiomatic Approach," Papers, Pennsylvania State - Department of Economics 3-93-1, Pennsylvania State - Department of Economics.
  2. Bourguignon, Francois & Ferreira, Francisco H. G. & Walton, Michael, 2006. "Equity, Efficient and Inequality Traps: A Research Agenda," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp06-025, Harvard University, John F. Kennedy School of Government.
  3. Fran?s Bourguignon & Francisco H. G. Ferreira & Marta Menendez, 2003. "Inequality of outcomes and inequality of opportunities in Brazil," Policy Research Working Paper Series 3174, The World Bank.
  4. Alberto Alesina & Eliana La Ferrara, . "Preferences for Redistribution in the Land of Opportunities," Working Papers 178, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  5. Flavio Cunha & James Heckman, 2007. "The Technology of Skill Formation," NBER Working Papers 12840, National Bureau of Economic Research, Inc.
  6. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  7. Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996. "Robustness Properties of Inequality Measures," Econometrica, Econometric Society, Econometric Society, vol. 64(1), pages 77-101, January.
  8. Fleurbaey, Marc, 2008. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199215911, October.
  9. Cowell, Frank A. & Victoria-Feser, Maria-Pia, 1996. "Poverty measurement with contaminated data: A robust approach," European Economic Review, Elsevier, Elsevier, vol. 40(9), pages 1761-1771, December.
  10. Bourguignon, François & Ferreira, Francisco & Menéndez, Marta, 2007. "Inequality of Opportunity in Brazil," Economics Papers from University Paris Dauphine 123456789/1552, Paris Dauphine University.
  11. Juan D. Moreno-Ternero, 2007. "On the design of equal-opportunity policies," Investigaciones Economicas, Fundación SEPI, Fundación SEPI, vol. 31(3), pages 351-374, September.
  12. Villar Antonio, 2005. "On the Welfare Evaluation of Income and Opportunity," The B.E. Journal of Theoretical Economics, De Gruyter, De Gruyter, vol. 5(1), pages 1-21, June.
  13. Nicolas Pistolesi, 2009. "Inequality of opportunity in the land of opportunities, 1968–2001," Journal of Economic Inequality, Springer, Springer, vol. 7(4), pages 411-433, December.
  14. Frank A. Cowell & Maria-Pia Victoria-Feser, 2002. "Welfare Rankings in the Presence of Contaminated Data," Econometrica, Econometric Society, Econometric Society, vol. 70(3), pages 1221-1233, May.
  15. Van Kerm, Philippe, 2007. "Extreme incomes and the estimation of poverty and inequality indicators from EU-SILC," IRISS Working Paper Series, IRISS at CEPS/INSTEAD 2007-01, IRISS at CEPS/INSTEAD.
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Citations

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Cited by:
  1. Aitor Calo Blanco & J. Ignacio García Pérez, 2012. "On the welfare loss caused by inequality of opportunity," Working Papers 12.12, Universidad Pablo de Olavide, Department of Economics.
  2. Brunori, Paolo & Ferreira, Francisco H. G. & Peragine, Vito, 2013. "Inequality of Opportunity, Income Inequality and Economic Mobility: Some International Comparisons," IZA Discussion Papers 7155, Institute for the Study of Labor (IZA).
  3. Judith Niehues & Andreas Peichl, 2011. "Lower and Upper Bounds of Unfair Inequality: Theory and Evidence for Germany and the US," SOEPpapers on Multidisciplinary Panel Data Research 395, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Ashish Singh, 2011. "Gender based intra-household inequality of opportunity in academic skills among Indian children," Economics Bulletin, AccessEcon, vol. 31(3), pages 2333-2346.
  5. Luis Fernando Gamboa & Fábio D. Waltenberg, 2011. "Inequality of opportunity in educational achievement in Latin America: Evidence from PISA 2006-2009," Working Papers 206, ECINEQ, Society for the Study of Economic Inequality.
  6. Jean-François Carpantier & Christelle Sapata, 2012. "An ex-post view of inequality of opportunity in France and its regions," Working Papers wpdea1211, Department of Applied Economics at Universitat Autonoma of Barcelona.
  7. Niehues, J. (Judith) & Andreas Peichl, 2012. "GINI DP 34: Bounds of Unfair Inequality of Opportunity: Theory and Evidence for Germany and the US," GINI Discussion Papers, AIAS, Amsterdam Institute for Advanced Labour Studies 34, AIAS, Amsterdam Institute for Advanced Labour Studies.
  8. Judith Niehues & Andreas Peichl, 2012. "Bounds of Unfair Inequality of Opportunity: Theory and Evidence for Germany and the US," CESifo Working Paper Series 3815, CESifo Group Munich.
  9. Gamboa, Luis Fernando & Waltenberg, Fábio D., 2012. "Inequality of opportunity for educational achievement in Latin America: Evidence from PISA 2006–2009," Economics of Education Review, Elsevier, Elsevier, vol. 31(5), pages 694-708.
  10. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni dell'Istituto di Politica Economica, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  11. Ronald Bachmann & Peggy Bechara & Sandra Schaffner, 2012. "Wage Inequality and Wage Mobility in Europe," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0386, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  12. Vito Peragine, 2011. "Review of “Measuring inequality of opportunities in Latin America and the Caribbean” by Ricardo Paes de Barros, Francisco H. G. Ferreira, José R. Molinas Vega, and Jaime Saavedra Chanduvi , World," Journal of Economic Inequality, Springer, Springer, vol. 9(1), pages 137-143, March.
  13. CARPANTIER, Jean-François & SAPATA, Christelle, 2012. "Unfair inequalities in France: A regional comparison," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2012038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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