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Measuring Inequality of Opportunity through Between-Group Inequality Components

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Author Info
Abatemarco, Antonio (Dipartimento di Scienze Economiche e Statistiche - Universita di Salerno)

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Abstract

Opportunity 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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Publisher Info
Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2008-11.

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Length: 18 pages
Date of creation: Nov 2008
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Publication status: Published in Journal of Economic Inequality [link]
Handle: RePEc:irs:iriswp:2008-11

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Related research
Keywords: inequality; opportunity ; decomposition ; measurement;

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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  1. Sohn, Christophe & Reitel, Bernard & Walther, Olivier, 2009. "Cross-border metropolitan integration in Europe (Luxembourg, Basel and Geneva)," IRISS Working Paper Series 2009-02, IRISS at CEPS/INSTEAD. [Downloadable!]
  2. Van Kerm, Philippe, 2009. "Generalized measures of wage differentials," IRISS Working Paper Series 2009-08, IRISS at CEPS/INSTEAD. [Downloadable!]
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