Measuring Inequality of Opportunity through Between-Group Inequality Components
AbstractOpportunity egalitarians support rich-to-poor redistribution whenever this allows for the compensation of income disparities due to non-responsible choices (circum- stances). In this paper we investigate the measurement of opportunity inequality within Roemer's (1993) pragmatic theory where equally subgroup ranked individuals are assumed to be equally responsible. Given entropy-based, deprivation-based and welfaristic inequality decomposition procedures, we show that the between-group Gini index - obtained from the two-components decomposition (Dagum 1997) - is the only between-group inequality index satisfying the Pigou-Dalton principle of transfer as reformulated for opportunity egalitarianism.
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Bibliographic InfoPaper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2008-11.
Length: 18 pages
Date of creation: Nov 2008
Date of revision:
Publication status: Published in Journal of Economic Inequality [link]
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inequality ; opportunity ; decomposition ; measurement;
Other versions of this item:
- Antonio Abatemarco, 2010. "Measuring inequality of opportunity through between-group inequality components," Journal of Economic Inequality, Springer, vol. 8(4), pages 475-490, December.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-01 (All new papers)
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