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Dynamic Equality of Opportunity

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  • John E. Roemer
  • Burak Ünveren

Abstract

What are the long-term effects of policies intended to equalize opportunities among different social classes of children" To find out, we study the stationary states of an intergenerational model where adults are either White or Blue collar employees. Both adults and the state invest in their children�s education. Our analysis indicates that the major obstacle to equalizing opportunities in the long-run is private educational investment. Next we examine economies where only the state invests in education, motivated by the Nordic experience. In a majority of these economies, no child lags behind regarding future prospects, a theoretical result confirmed by simulations.
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Suggested Citation

  • John E. Roemer & Burak Ünveren, 2017. "Dynamic Equality of Opportunity," Economica, London School of Economics and Political Science, vol. 84(334), pages 322-343, April.
    • Handle: RePEc:bla:econom:v:84:y:2017:i:334:p:322-343
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    File URL: http://hdl.handle.net/10.1111/ecca.12197
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    1. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    2. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    3. Roemer, John E., 2012. "On Several Approaches To Equality Of Opportunity," Economics and Philosophy, Cambridge University Press, vol. 28(2), pages 165-200, July.
    4. 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.
    5. 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.
    6. Giorgio Brunello & Daniele Checchi, 2007. "Does school tracking affect equality of opportunity? New international evidence [‘Educational opportunities and the role of institutions’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 22(52), pages 782-861.
    7. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
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    Cited by:

    1. Domenico Moramarco & Flaviana Palmisano & Vito Peragine, 2020. "Intertemporal inequality of opportunity," Working Papers 554, ECINEQ, Society for the Study of Economic Inequality.
    2. Pertti Haaparanta & Ravi Kanbur & Tuuli Paukkeri & Jukka Pirttilä & Matti Tuomala, 2022. "Promoting education under distortionary taxation: equality of opportunity versus welfarism," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(2), pages 281-297, June.
    3. Domenico Moramarco & Umutcan Salman, 2023. "Equal opportunities in many-to-one matching markets," Working Papers 649, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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