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The Roots of Inequality – Is Inequality also Unjust?

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  • Paolo Brunori
  • Paul Hufe
  • Daniel Mahler

Abstract

The public discussion on social justice in Germany pre-dates the last federal election campaign. In this debate, reference is often made to the development of income inequality. For a meaningful answer to the question of fairness, however, a comparison with historical or international reference points is only helpful to a certain extent. Instead, the concept of fairness should first be clarified. Paolo Brunori, University of Florence, Paul Hufe, ifo Institute and Daniel Mahler of the University of Copenhagen present a new measurement concept for a wide-spread ideal of fairness: the idea of equal opportunity. Equal opportunity means that the ability to earn a living does not depend on factors that are beyond personal influence. According to the authors' calculations, about 25 percent of income inequality can be attributed to an uneven distribution of opportunities, with success in life being influenced above all by the education and profession of the father.

Suggested Citation

  • Paolo Brunori & Paul Hufe & Daniel Mahler, 2018. "The Roots of Inequality – Is Inequality also Unjust?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(05), pages 18-22, March.
  • Handle: RePEc:ces:ifosdt:v:71:y:2018:i:05:p:18-22
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    References listed on IDEAS

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    1. Paul Hufe & Andreas Peichl & John Roemer & Martin Ungerer, 2017. "Inequality of income acquisition: the role of childhood circumstances," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 499-544, December.
    2. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    3. Judith Niehues & Andreas Peichl, 2014. "Upper bounds of inequality of opportunity: theory and evidence for Germany and the US," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 73-99, June.
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    5. Paolo Brunori & Paul Hufe & Daniel Gerszon Mahler, 2017. "The Roots of Inequality: Estimating Inequality of Opportunity from Regression Trees," Working Papers - Economics wp2017_18.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
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    Cited by:

    1. Hufe, Paul & Peichl, Andreas & Stöckli, Marc, 2018. "Ökonomische Ungleichheit in Deutschland – ein Überblick," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(3), pages 185-199.
    2. Andreas Peichl & Marc Stöckli, 2018. "Ungleichheit und Umverteilung in Deutschland: Trends und Handlungsoptionen," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(15), pages 18-22, August.
    3. Till van Treeck & Judith Niehues & Galina Kolev & Piotr Pysz & Peter Hampe & Andreas Peichl & Marc Stöckli & Georg Cremer, 2018. "How Fair Is the World? – Social Inequality and Economic Growth," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(15), pages 03-25, August.

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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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