IDEAS home Printed from https://ideas.repec.org/p/udc/wpaper/wp352.html
   My bibliography  Save this paper

Inequality of Opportunities and Long Term Earnings Measures: Evidence for Chile

Author

Listed:
  • Dante Contreras
  • Osvaldo Larrañaga
  • Esteban Puentes
  • Tomás Rau

Abstract

In this paper we assess the sensitivity of measures of inequality of opportunity to long-term earnings data. We compare indicators using four and seven year earnings with indicators that use the most commonly available yearly and monthly earnings. We argue that four and seven year earnings are preferable since they are a more precise measure of permanent income and are less affected by short-term variability. We use data available for Chile and found that the use of seven and four year earnings produces a 25% higher share of inequality of opportunity compared to yearly and monthly earnings measures. We find that parental education contributes most to income inequality in Chile. Finally, we perform Monte Carlo simulations, finding that our results are robust to several income processes.

Suggested Citation

  • Dante Contreras & Osvaldo Larrañaga & Esteban Puentes & Tomás Rau, 2012. "Inequality of Opportunities and Long Term Earnings Measures: Evidence for Chile," Working Papers wp352, University of Chile, Department of Economics.
    • Handle: RePEc:udc:wpaper:wp352
    as

    Download full text from publisher

    File URL: http://www.econ.uchile.cl/uploads/publicacion/4b2e5ee301429d8c7492fb3e24c36b13d866ea94.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Saavedra-Chanduví, Jaime & Molinas, José R. & De Barros, Ricardo Paes & Ferreira, Francisco H. G., 2009. "Measuring Inequality of Opportunities in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 361.
    2. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    3. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 429-450, December.
    4. Javier Núñez Errázuriz & Andrea Tartakowsky, 2009. "The relationship between Inequality of Outcomes and Inequality of Opportunities in a high-inequality country: The case of Chile," Working Papers wp292, University of Chile, Department of Economics.
    5. 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.
    6. Amanda Gosling & Stephen Machin & Costas Meghir, 2000. "The Changing Distribution of Male Wages in the U.K," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 635-666.
    7. David Bravo & Jere R. Behrman & Olivia s. Mitchell & Petra E. Todd. & Javiera Vásquez, 2008. "Encuesta de protección social 2006: Presentación general y principales resultados," Working Papers wp273, University of Chile, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Inequality of Opportunities and Long Term Earnings Measures: Evidence for Chile
      by Maximo Rossi in Wikiprogress América Latina on 2012-05-29 17:14:00

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dante Contreras & Osvaldo Larrañaga & Esteban Puentes & Tomás Rau, 2014. "Improving the Measurement of the Relationship between Opportunities and Income: Evidence from Longitudinal Data from Chile," Development Policy Review, Overseas Development Institute, vol. 32(2), pages 219-237, March.
    2. Olivera, Javier & Andreoli, Francesco & Leist, Anja K. & Chauvel, Louis, 2018. "Inequality in old age cognition across the world," Economics & Human Biology, Elsevier, vol. 29(C), pages 179-188.
    3. Marc Fleurbaey & Vito Peragine, 2013. "Ex Ante Versus Ex Post Equality of Opportunity," Economica, London School of Economics and Political Science, vol. 80(317), pages 118-130, January.
    4. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," The World Bank Economic Review, World Bank, vol. 28(2), pages 247-281.
    5. ANDREOLI Francesco & HAVNES Tarjei & LEFRANC Arnaud, 2014. "Equalization of opportunity: Definitions, implementable conditions and application to early-childhood policy evaluation," LISER Working Paper Series 2014-12, Luxembourg Institute of Socio-Economic Research (LISER).
    6. Sarmiento Espinel, Jaime Andrés & Silva Arias, Adriana Carolina & van Gameren, Edwin, 2019. "Evolution of the inequality of educational opportunities from secondary education to university," International Journal of Educational Development, Elsevier, vol. 66(C), pages 193-202.
    7. Herrera Jiménez, Alejandro & Villegas Quino, Horacio, 2016. "Circumstances and Determination of Individual Outcomes in Bolivia: Family Background and Equality of Opportunities (2003-2013)," Documentos de trabajo 1/2016, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    8. Joseph Deutsch & Jacques Silber, 2011. "An ordinal approach to the study of intergenerational opportunities for standard of living: the case of Latin America," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 579-604, December.
    9. Patrizia Luongo, 2015. "Inequality of opportunity in educational achievements: Cross-country and intertemporal comparisons," WIDER Working Paper Series 043, World Institute for Development Economic Research (UNU-WIDER).
    10. Flaviana Palmisano & Vito Peragine & Federico Biagi, 2019. "Inequality of opportunity in tertiary education in Europe," JRC Research Reports JRC118543, Joint Research Centre.
    11. Luis Fernando Gamboa & Fábio D. Waltenberg, 2011. "Inequality of opportunity in educational achievement in Latin America: Evidence from PISA 2006-2009," Working Papers 206, ECINEQ, Society for the Study of Economic Inequality.
    12. Karin Hederos & Markus Jäntti & Lena Lindahl, 2017. "Gender and inequality of opportunity in Sweden," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 605-635, December.
    13. Francesco Andreoli & Arnaud Lefranc, 2013. "Equalization of opportunity: Definitions and implementable conditions," Working Papers 310, ECINEQ, Society for the Study of Economic Inequality.
    14. Umut Türk, 2019. "Socio-Economic Determinants of Student Mobility and Inequality of Access to Higher Education in Italy," Networks and Spatial Economics, Springer, vol. 19(1), pages 125-148, March.
    15. Umut Turk & John Östh, 2017. "Inequality of Opportunity in Sweden:A Spatial Perspective," Working Papers 09/2017, University of Verona, Department of Economics.
    16. Checchi, Daniele & Peragine, Vito & Serlenga, Laura, 2010. "Fair and Unfair Income Inequalities in Europe," IZA Discussion Papers 5025, Institute of Labor Economics (IZA).
    17. John E. Roemer & Alain Trannoy, 2016. "Equality of Opportunity: Theory and Measurement," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1288-1332, December.
    18. Djavad Salehi-Isfahani & Nadia Hassine & Ragui Assaad, 2014. "Equality of opportunity in educational achievement in the Middle East and North Africa," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 489-515, December.
    19. Vito Peragine & Federico Biagi, 2019. "Equality of opportunity: theory, measurement and policy implications," JRC Research Reports JRC118542, Joint Research Centre.
    20. Akanksha Choudhary & Gowtham T. Muthukkumaran & Ashish Singh, 2019. "Inequality of Opportunity in Indian Women," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 389-413, August.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:udc:wpaper:wp352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohit Karnani (email available below). General contact details of provider: https://edirc.repec.org/data/deuclcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.