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Measuring multidimensional inequality of opportunity

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  • Martyna Kobus
  • Marek Kapera
  • Vitorocco Peragine

Abstract

This paper develops a normative approach to the measurement of ex-ante inequality of opportunity in a multidimensional setting—that is, when the individual outcome is represented by a multidimensional variable. We characterize three classes of social welfare functions, all endorsing ex-ante compensation but each reflecting a specific reward principle: (1) utilitarian, (2) agnostic, and (3) averse. The first class is implemented via generalized Lorenz dominance applied to each attribute separately.

Suggested Citation

  • Martyna Kobus & Marek Kapera & Vitorocco Peragine, 2020. "Measuring multidimensional inequality of opportunity," WIDER Working Paper Series wp-2020-19, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-19
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    References listed on IDEAS

    as
    1. 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.
    2. Hyun H. Son, 2013. "Inequality of Human Opportunities in Developing Asia," Asian Development Review, MIT Press, vol. 30(2), pages 110-130, September.
    3. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    4. Arnaud Lefranc & Nicolas Pistolesi & Alain Trannoy, 2008. "Inequality Of Opportunities Vs. Inequality Of Outcomes: Are Western Societies All Alike?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 513-546, December.
    5. Bosmans, Kristof & Lauwers, Luc & Ooghe, Erwin, 2009. "A consistent multidimensional Pigou-Dalton transfer principle," Journal of Economic Theory, Elsevier, vol. 144(3), pages 1358-1371, May.
    6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    7. Francisco H.G. Ferreira & Jérémie Gignoux, 2010. "Inequality of Opportunity for Education: Turkey," PSE-Ecole d'économie de Paris (Postprint) halshs-00754838, HAL.
    8. Gaston Yalonetzky, 2012. "A dissimilarity index of multidimensional inequality of opportunity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 343-373, September.
    9. Pedro Rosa Dias, 2009. "Inequality of opportunity in health: evidence from a UK cohort study," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 1057-1074, September.
    10. Vito Peragine, 2004. "Ranking Income Distributions According to Equality of Opportunity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(1), pages 11-30, April.
    11. 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.
    12. Francisco H.G. Ferreira & Jérémie Gignoux, 2011. "The Measurement of Inequality of Inequality of Opportunity: Theory and an Application to Latin America," PSE-Ecole d'économie de Paris (Postprint) halshs-00754503, HAL.
    13. Boland, Philip J. & Proschan, Frank, 1988. "Multivariate arrangement increasing functions with applications in probability and statistics," Journal of Multivariate Analysis, Elsevier, vol. 25(2), pages 286-298, May.
    14. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    15. Peragine, Vitorocco, 2002. "Opportunity egalitarianism and income inequality," Mathematical Social Sciences, Elsevier, vol. 44(1), pages 45-64, September.
    16. Li Donni, P & Peragine, V & Pignataro G, 2011. "Measuring equity in health: a normative decomposition," Health, Econometrics and Data Group (HEDG) Working Papers 11/06, HEDG, c/o Department of Economics, University of York.
    17. Maasoumi, Esfandiar, 1986. "The Measurement and Decomposition of Multi-dimensional Inequality," Econometrica, Econometric Society, vol. 54(4), pages 991-997, July.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Equality of opportunity; Economic inequality; Multidimensional welfare; Multidimensional inequality; Multidimensional welfare measurement; Lorenz dominance;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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