Opportunity-sensitive poverty measurement
AbstractWe axiomatically characterize two classes of poverty measures which are sensitive to inequality of opportunity - one a strict subset of the other. The proposed indices are sensitive not only to income shortfalls from the poverty line, but also to differences in opportunities faced by people with different pre-determined characteristics, such as race or family background. Dominance conditions are established for each class of measures, and a sub-family of scalar indices, based on a rank-dependent aggregation of type-specific poverty levels, is also introduced. Using household survey data from eighteen European countries in 2005, we find substantial differences in country rankings based on standard FGT indices and on the new opportunity-sensitive indices. Cross-country differences in opportunity-sensitive poverty are decomposed into a level effect; a distribution effect; and a population composition effect.
Download InfoIf 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.
Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 317.
Length: 28 pages
Date of creation: Nov 2013
Date of revision:
Inequality of opportunity; poverty measures; poverty comparisons.;
Other versions of this item:
- Brunori, Paolo & Ferreira, Francisco & Lugo, Maria Ana & Peragine, Vito, 2013. "Opportunity-sensitive poverty measurement," Policy Research Working Paper Series 6728, The World Bank.
- Brunori, Paolo & Ferreira, Francisco H. G. & Lugo, Maria Ana & Peragine, Vito, 2013. "Opportunity-Sensitive Poverty Measurement," IZA Discussion Papers 7818, Institute for the Study of Labor (IZA).
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
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.:
- Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994.
"Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach,"
Cahiers de recherche
9406, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-44, September.
- John DiNardo & Nicole M. Fortin & Thomas Lemieux, 1995. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," NBER Working Papers 5093, National Bureau of Economic Research, Inc.
- Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach," Cahiers de recherche 9406, Universite de Montreal, Departement de sciences economiques.
- Nidardo, J. & Fortin, N. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Papers 93-94-15, California Irvine - School of Social Sciences.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
- Arnaud LEFRANC, Nicolas PISTOLESI, Alain TRANNOY, 2009.
"Equality of opportunity and luck: De nitions and testable conditions, with an application to income in France,"
THEMA Working Papers
2009-01, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Lefranc, Arnaud & Pistolesi, Nicolas & Trannoy, Alain, 2009. "Equality of opportunity and luck: Definitions and testable conditions, with an application to income in France," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1189-1207, December.
- Chambaz, Christine & Maurin, Eric, 1998. "Atkinson and Bourguignon's Dominance Criteria: Extended and Applied to the Measurement of Poverty in France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 497-513, December.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Fleurbaey,Marc & Maniquet,François, 2011.
"A Theory of Fairness and Social Welfare,"
Cambridge University Press, number 9780521887427, April.
- OOGHE, Erwin & SCHOKKAERT, Erik & VAN DE GAER, Dirk, .
"Equality of opportunity versus equality of opportunity sets,"
CORE Discussion Papers RP
-1960, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Erwin Ooghe & Erik Schokkaert & Dirk gaer, 2007. "Equality of Opportunity versus Equality of Opportunity Sets," Social Choice and Welfare, Springer, vol. 28(2), pages 209-230, February.
- Erwin Ooghe & Erik Schokkaert & Dirk Van de Gaer, 2003. "Equality of opportunity versus equality of opportunity sets," Public Economics Working Paper Series wpeoeos, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
- E. Ooghe & E. Schokkaert & D. Van De Gaer, 2004. "Equality of opportunity versus equality of opportunity sets," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/240, Ghent University, Faculty of Economics and Business Administration.
- Bourguignon, François & Ferreira, Francisco & Menéndez, Marta, 2007.
"Inequality of Opportunity in Brazil,"
Economics Papers from University Paris Dauphine
123456789/1552, Paris Dauphine University.
- 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.
- Koen Decancq & Tim Goedemé & Karel Van den Bosch & Josefine Vanhille, 2013. "The Evolution of Poverty in the European Union: Concepts, Measurement and Data," ImPRovE Working Papers 13/01, Herman Deleeck Centre for Social Policy, University of Antwerp.
- 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.
- Ferreira , Francisco H. G. & Gignoux, Jeremie, 2008. "The measurement of inequality of opportunity : theory and an application to Latin America," Policy Research Working Paper Series 4659, The World Bank.
- Fleurbaey, Marc, 2008.
"Fairness, Responsibility, and Welfare,"
Oxford University Press, number 9780199215911, September.
- Marc Fleurbaey & Vito Peragine, 2013.
"Ex Ante Versus Ex Post Equality of Opportunity,"
London School of Economics and Political Science, vol. 80(317), pages 118-130, 01.
- Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," Journal of Economic Inequality, Springer, vol. 8(4), pages 429-450, December.
- Vito Peragine, 2004. "Ranking Income Distributions According to Equality of Opportunity," Journal of Economic Inequality, Springer, vol. 2(1), pages 11-30, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).
If references are entirely missing, you can add them using this form.