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Discrimination and Equality of Opportunity

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  • J. Ignacio García-Pérez

    ()
    (Universidad Pablo de Olavide, FEDEA & FCEA)

  • Antonio Villar

    ()
    (Universidad Pablo de Olavide & Ivie)

Abstract

This paper presents a measure of social discrimination based on the principle of equality of opportunity. According to this principle we only have to care about the inequality derived from people’s differential circumstances (and not about outcome differences due to people’s diverse degree of effort). We propose approaching the measurement of group discrimination as the “welfare loss” attributed to the inequality between social groups of similar characteristics. We also provide an empirical application to the analysis of gender discrimination in the European labour market. We estimate wage equations to breakdown wage gaps and to control for extra individual heterogeneity. Given these predictions, we compute the index of welfare loss due to gender discrimination.

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File URL: http://www.upo.es/serv/bib/wps/econ0905.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 09.05.

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Length: 29 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:pab:wpaper:09.05

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Keywords: Equality of opportunity; welfare losses; gender discrimination; wage equations.;

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References

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  1. Peragine, Vitorocco, 2002. "Opportunity egalitarianism and income inequality," Mathematical Social Sciences, Elsevier, vol. 44(1), pages 45-64, September.
  2. FLEURBAEY, Marc & MANIQUET, François, . "Compensation and responsibility," CORE Discussion Papers RP -2284, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  5. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
  6. Antonio Villar Notario & José María Tomás, 1992. "La medición del bienestar mediante indicadores de "renta real": caracterización de un índice de bienestar tipo Theil," Working Papers. Serie EC 1992-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  7. Ricardo Mora & Javier Ruiz-Castillo, 2003. "Gender Segregation: From Birth To Occupation," Economics Working Papers we033612, Universidad Carlos III, Departamento de Economía.
  8. Javier Ruiz-Castillo, 1995. "Income distribution and social welfare: a review essay," Investigaciones Economicas, Fundación SEPI, vol. 19(1), pages 3-34, January.
  9. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
  10. Cowell, Frank A. & Kuga, Kiyoshi, 1981. "Additivity and the entropy concept: An axiomatic approach to inequality measurement," Journal of Economic Theory, Elsevier, vol. 25(1), pages 131-143, August.
  11. Foster, James E., 1983. "An axiomatic characterization of the Theil measure of income inequality," Journal of Economic Theory, Elsevier, vol. 31(1), pages 105-121, October.
  12. Villar Antonio, 2005. "On the Welfare Evaluation of Income and Opportunity," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 5(1), pages 1-21, June.
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Cited by:
  1. Andrés Cendales, 2012. "Vote Buying, Political Patronage and Selective Plunder," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 237-276, November.

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