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On Meritocratic Inequality Indices

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  • Kobus, Martyna
  • Miloś, Piotr

Abstract

We establish a Theorem on Structural Inequality Indices which provides fundamental link between inequality measurement and a concept of social justice embedded in meritocracy framework by taking axiomatic approach and redefining standard properties of inequality indices in a way that incorporates meritocracy, in particular equality of opportunity concept of Roemer (1998). Taking into account recent proof Benabou(2000) that meritocracy contributes positively to growth, which break the conventional trade off between equity and efficiency, the theorem provides for their connection with the theory of inequality measurement. If an index is to be both an inequality index and meritocratic it has to be of a form given in our theorem. We then propose a two-dimensional measure of meritocratic inequality index and discuss its advantages over standard Gini index and in reflecting better the nature of inequality in a society.

Suggested Citation

  • Kobus, Martyna & Miloś, Piotr, 2008. "On Meritocratic Inequality Indices," MPRA Paper 10532, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10532
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    File URL: https://mpra.ub.uni-muenchen.de/10532/1/MPRA_paper_10532.pdf
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    References listed on IDEAS

    as
    1. Dutta, Bhaskar, 2002. "Chapter 12 Inequality, poverty and welfare," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 12, pages 597-633, Elsevier.
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    Cited by:

    1. Checchi, Daniele & De Fraja, Gianni & Verzillo, Stefano, 2014. "And the Winners Are... An Axiomatic Approach to Selection from a Set," IZA Discussion Papers 8344, Institute of Labor Economics (IZA).
    2. Daniele Checchi & Gianni De Fraja & Stefano Verzillo, 2014. "And the Winners Are… An Axiomatic Approach to Selection from a Set," Discussion Papers 14/05, University of Nottingham, School of Economics.

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    More about this item

    Keywords

    inequality measurement; equality of opportunity; meritocracy; social welfare;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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