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On the Welfare Evaluation of Income and Opportunity

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  • Villar Antonio

    () (University of Alicante & Ivie)

Abstract

This paper provides an axiomatization of a cardinal welfare measure for the evaluation of income and opportunity. Following Roemer's (1998) formulation of equality of opportunity, we divide the society in n effort groups consisting of subsets of agents who exert a comparable degree of effort. We show that social welfare can be measured as the sum of n partial indices, one for each effort group, each of which consists of a function of the aggregate income of the group and its dispersion (measured by Theil's first inequality index).

Suggested Citation

  • 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.
  • Handle: RePEc:bpj:bejtec:v:contributions.5:y:2005:i:1:n:3
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    References listed on IDEAS

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    1. Amartya Sen, 1996. "Maximization and the Act of Choice," Harvard Institute of Economic Research Working Papers 1766, Harvard - Institute of Economic Research.
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    5. Amartya Sen, 1997. "Maximization and the Act of Choice," Econometrica, Econometric Society, vol. 65(4), pages 745-780, July.
    6. Slovic, Paul & Finucane, Melissa & Peters, Ellen & MacGregor, Donald G., 2002. "Rational actors or rational fools: implications of the affect heuristic for behavioral economics," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(4), pages 329-342.
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    Citations

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    Cited by:

    1. Aitor Calo-Blanco & J. García-Pérez, 2014. "On the welfare loss caused by inequality of opportunity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 221-237.
    2. Andrés Cendales, 2012. "Vote Buying, Political Patronage and Selective Plunder," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 237-276, November.
    3. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 429-450.
    4. J. Ignacio García-Pérez & Antonio Villar, 2009. "Discrimination and Equality of Opportunity," Working Papers 09.05, Universidad Pablo de Olavide, Department of Economics.
    5. Villar Notario Antonio & Calo-Blanco Aitor, 2009. "Education, Utilitarianism, and Equality of Opportunity," Working Papers 201051, Fundacion BBVA / BBVA Foundation.
    6. Checchi, Daniele & Peragine, Vito, 2005. "Regional Disparities and Inequality of Opportunity: The Case of Italy," IZA Discussion Papers 1874, Institute for the Study of Labor (IZA).
    7. Giuseppe Pignataro, 2009. "Decomposing equality of opportunity by income sources," Economics Bulletin, AccessEcon, vol. 29(2), pages 702-711.
    8. Antonio Abatemarco, 2016. "Evaluating economic mobility under opportunity egalitarianism," Working Papers 396, ECINEQ, Society for the Study of Economic Inequality.
    9. Peragine, Vito & Serlenga, Laura, 2007. "Higher Education and Equality of Opportunity in Italy," IZA Discussion Papers 3163, Institute for the Study of Labor (IZA).
    10. Checchi, Daniele & Peragine, Vito & Serlenga, Laura, 2010. "Fair and Unfair Income Inequalities in Europe," IZA Discussion Papers 5025, Institute for the Study of Labor (IZA).
    11. 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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