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Measuring and Implementing Equality of Opportunity for Income

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Vitorocco Peragine

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Abstract

Departing from the welfarist tradition, recent theories of justice focus on individual opportunities as the appropriate standard for distributive judgments. Justice is seen as requiring equality of opportunity, instead of outcomes, among the individuals. To explore how this philosophical conception can be translated into concrete public policy, we select the in-come as relevant outcome and the income tax as the relevant redistributive policy, and we address the following questions: (i) what is the degree of opportunity inequality in an income distribution? (ii) how to design an opportunity egalitarian income tax policy? Both positive and normative criteria for ranking income distributions on the basis of equality of oppor-tunities are derived. Moreover, we characterize an opportunity egalitarian income tax policy and we formulate criteria for choosing among alternative tax systems.

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Paper provided by Department of Economics, University of York in its series Discussion Papers with number 98/11.

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Handle: RePEc:yor:yorken:98/11

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  1. W. Bossert & M. Fleurbaey & D. Van de gaer, 1996. "On second-best compensation," THEMA Working Papers 96-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
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  2. Efe A. Ok & Laurence Kranich, 1998. "The measurement of opportunity inequality: a cardinality-based approach," Social Choice and Welfare, Springer, vol. 15(2), pages 263-287. [Downloadable!] (restricted)
  3. Kranich, L., 1993. "Equitable Opportunities: An Axiomatic Approach," Papers 3-93-1, Pennsylvania State - Department of Economics.
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  4. Marc Fleurbaey & Walter Bossert, 1996. "Redistribution and compensation (*)," Social Choice and Welfare, Springer, vol. 13(3), pages 343-355.
  5. Roemer, J.E., 1992. "A Pragmatic Theory of Responsibility for the Egalitarian Planner," Papers 391, California Davis - Institute of Governmental Affairs.
  6. Bossert, Walter, 1995. "Redistribution mechanisms based on individual characteristics," Mathematical Social Sciences, Elsevier, vol. 29(1), pages 1-17, February. [Downloadable!] (restricted)
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  7. Herrero, Carmen, 1997. "Equitable opportunities: an extension," Economics Letters, Elsevier, vol. 55(1), pages 91-95, August. [Downloadable!] (restricted)
  8. Laurence Kranich, 1996. "Equitable opportunities in economic environments," Social Choice and Welfare, Springer, vol. 14(1), pages 57-64. [Downloadable!] (restricted)
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  1. Daniele Checchi & Vitorocco Peragine, 2005. "Regional Disparities and Inequality of Opportunity: The Case of Italy," IZA Discussion Papers 1874, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Vitorocco Peragine, . "Responsibility Compensation and Income Distribution," Discussion Papers 98/13, Department of Economics, University of York. [Downloadable!]
  3. Laura Serlenga & Vito Peragine, 2007. "Higher education and equality of opportunity in Italy," Working Papers 79, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
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  4. Marc Fleurbaey, 2006. "Health, equity and social welfare," Annales d'Economie et de Statistique, ADRES, issue 83-84, pages 02, Juillet-D. [Downloadable!]
  5. Vito Peragine, 2004. "Ranking Income Distributions According to Equality of Opportunity," Journal of Economic Inequality, Springer, vol. 2(1), pages 11-30, April. [Downloadable!] (restricted)
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