Economic development as opportunity equalization
AbstractEconomic development should be conceived of as the degree to which an economy has implemented an efficient and just distribution of economic resources. The ubiquitous measure of GDP per capita reflects a utilitarian conception of justice, where individual utility is defined as personal income, and social welfare is the average of utilities in a population. A more attractive conception of justice is opportunity-equalization. Here, a two-dimensional measure of economic development is proposed, based upon viewing individuals’ incomes as a consequence of circumstances, effort, and policy. The first dimension is the average income level of those in the society with the most disadvantaged circumstances, and the second dimension is the degree to which total income inequality is due to differential effort, as opposed to differential circumstances. This pair of numbers is computed for a set of 22 European countries. No country dominates all others on both dimensions. The two-dimensional measure induces a partial ordering of countries with respect to development.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 6530.
Date of creation: 01 Jul 2013
Date of revision:
Economic Theory&Research; Inequality; Population Policies; Rural Poverty Reduction; Poverty Impact Evaluation;
Other versions of this item:
- John E. Roemer, 2006. "Economic Development as Opportunity Equalization," Cowles Foundation Discussion Papers 1583, Cowles Foundation for Research in Economics, Yale University.
- John E. Roemer, 2006. "Economic Development as Opportunity Equalization," Levine's Bibliography 321307000000000445, UCLA Department of Economics.
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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- Ashish Singh, 2011.
"Inequality of Opportunity in Indian Children: The Case of Immunization and Nutrition,"
Population Research and Policy Review,
Springer, vol. 30(6), pages 861-883, December.
- Singh, Ashish, 2010. "Inequality of opportunity in Indian children: the case of immunization and nutrition," MPRA Paper 32505, University Library of Munich, Germany.
- World Bank, 2012. "Well Begun, Not Yet Done : Vietnam's Remarkable Progress on Poverty Reduction and the Emerging Challenges," World Bank Other Operational Studies 12326, The World Bank.
- Ashish Singh, 2010. "The Effect of Family Background on Individual Wages and an Examination of Inequality of Opportunity in India," Journal of Labor Research, Springer, vol. 31(3), pages 230-246, September.
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