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Fair and unfair income inequalities in Europe

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  • Daniele Checchi

    ()

  • Vito Peragine

    ()

  • Laura Serlenga

    ()

Abstract

This paper analyses the extent of income inequality and opportunity inequality in 25 European countries. The present work contributes to understanding the origin of standard income inequality, helping to identify potential institutional setups that are associated to opportu nity inequality. We distinguish between ex ante and ex post opportunity inequality. We ?nd that ex ante equality of opportunity exhibits positive correlation with public expenditure in education, whereas expost equality of opportunity is also positively associated to union presence and to ?scal redistribution.

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File URL: http://www.child-centre.unito.it/papers/child06_2010.pdf
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Bibliographic Info

Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp06_10.

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Length: 37 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:wpc:wplist:wp06_10

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Keywords: Inequality of opportunity; income inequality;

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References

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  1. Fran?s Bourguignon & Francisco H. G. Ferreira & Marta Menendez, 2003. "Inequality of outcomes and inequality of opportunities in Brazil," Policy Research Working Paper Series 3174, The World Bank.
  2. Kranich, Laurence, 1996. "Equitable Opportunities: An Axiomatic Approach," Journal of Economic Theory, Elsevier, vol. 71(1), pages 131-147, October.
  3. Fleurbaey, Marc, 2008. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199215911, October.
  4. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
  5. Bourguignon, Francois & Ferreira, Francisco H. G. & Walton, Michael, 2006. "Equity, Efficient and Inequality Traps: A Research Agenda," Working Paper Series rwp06-025, Harvard University, John F. Kennedy School of Government.
  6. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," Harvard Institute of Economic Research Working Papers 1936, Harvard - Institute of Economic Research.
  7. Juan D. Moreno-Ternero, 2007. "On the design of equal-opportunity policies," Investigaciones Economicas, Fundación SEPI, vol. 31(3), pages 351-374, September.
  8. Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996. "Robustness Properties of Inequality Measures," Econometrica, Econometric Society, vol. 64(1), pages 77-101, January.
  9. Nicolas Pistolesi, 2009. "Inequality of opportunity in the land of opportunities, 1968–2001," Journal of Economic Inequality, Springer, vol. 7(4), pages 411-433, December.
  10. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  11. Francois Bourguignon & Francisco H.B. Ferreira & Marta Menéndez, 2005. "Inequality of Opportunity in Brazil," Ibero America Institute for Econ. Research (IAI) Discussion Papers 133, Ibero-America Institute for Economic Research.
  12. Van Kerm, Philippe, 2007. "Extreme incomes and the estimation of poverty and inequality indicators from EU-SILC," IRISS Working Paper Series 2007-01, IRISS at CEPS/INSTEAD.
  13. Frank A. Cowell & Maria-Pia Victoria-Feser, 2002. "Welfare Rankings in the Presence of Contaminated Data," Econometrica, Econometric Society, vol. 70(3), pages 1221-1233, May.
  14. Cowell, Frank A. & Victoria-Feser, Maria-Pia, 1996. "Poverty measurement with contaminated data: A robust approach," European Economic Review, Elsevier, vol. 40(9), pages 1761-1771, December.
  15. 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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Citations

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Cited by:
  1. 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.
  2. Judith Niehues & Andreas Peichl, 2012. "Bounds of Unfair Inequality of Opportunity: Theory and Evidence for Germany and the US," CESifo Working Paper Series 3815, CESifo Group Munich.
  3. Jean-François Carpantier & Christelle Sapata, 2012. "An ex-post view of inequality of opportunity in France and its regions," Working Papers wpdea1211, Department of Applied Economics at Universitat Autonoma of Barcelona.
  4. CARPANTIER, Jean-François & SAPATA, Christelle, 2012. "Unfair inequalities in France: A regional comparison," CORE Discussion Papers 2012038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Judith Niehues & Andreas Peichl, 2011. "Lower and Upper Bounds of Unfair Inequality: Theory and Evidence for Germany and the US," SOEPpapers on Multidisciplinary Panel Data Research 395, DIW Berlin, The German Socio-Economic Panel (SOEP).
  6. Aitor Calo-Blanco & J. García-Pérez, 2014. "On the welfare loss caused by inequality of opportunity," Journal of Economic Inequality, Springer, vol. 12(2), pages 221-237, June.
  7. Gamboa, Luis Fernando & Waltenberg, Fábio D., 2012. "Inequality of opportunity for educational achievement in Latin America: Evidence from PISA 2006–2009," Economics of Education Review, Elsevier, vol. 31(5), pages 694-708.
  8. Brunori, Paolo & Ferreira, Francisco H. G. & Peragine, Vito, 2013. "Inequality of Opportunity, Income Inequality and Economic Mobility: Some International Comparisons," IZA Discussion Papers 7155, Institute for the Study of Labor (IZA).
  9. Niehues, J. (Judith) & Andreas Peichl, 2012. "GINI DP 34: Bounds of Unfair Inequality of Opportunity: Theory and Evidence for Germany and the US," GINI Discussion Papers 34, AIAS, Amsterdam Institute for Advanced Labour Studies.
  10. Ronald Bachmann & Peggy Bechara & Sandra Schaffner, 2012. "Wage Inequality and Wage Mobility in Europe," Ruhr Economic Papers 0386, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  11. Ashish Singh, 2011. "Gender based intra-household inequality of opportunity in academic skills among Indian children," Economics Bulletin, AccessEcon, vol. 31(3), pages 2333-2346.
  12. Vito Peragine, 2011. "Review of “Measuring inequality of opportunities in Latin America and the Caribbean” by Ricardo Paes de Barros, Francisco H. G. Ferreira, José R. Molinas Vega, and Jaime Saavedra Chanduvi , World," Journal of Economic Inequality, Springer, vol. 9(1), pages 137-143, March.
  13. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni dell'Istituto di Politica Economica ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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