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Measuring equality of opportunity by Shapley value

  • Giuseppe Pignataro

    ()

    (Department of Economics, University of Bologna)

Equality of opportunity is a political ideal which requires that ex-ante inequalities, and only those inequalities, should be eliminated. Justice requires leveling the playing field by rendering everyone's opportunities equal in an appropriate sense, and then letting individual choices and their effects dictate further outcomes. In this paper we propose a methodology to decompose the path-independent Atkinson index of equality through Shapley value seeking for a measure of overall inequality produced by the marginal contributions of the opportunity and the responsibility component.

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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 30 (2010)
Issue (Month): 1 ()
Pages: 786-798

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Handle: RePEc:ebl:ecbull:eb-09-00665
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  1. Mª Casilda Lasso de la Vega & Ana Marta Urrutia, 2003. "A new factorial decomposition for the atkinson measure," Economics Bulletin, AccessEcon, vol. 4(29), pages 1-12.
  2. Mercedes Sastre & Alain Trannoy, 2002. "Shapley inequality decomposition by factor components: Some methodological issues," Journal of Economics, Springer, vol. 77(1), pages 51-89, December.
  3. Frank Cowell, 1998. "Measurement of inequality," LSE Research Online Documents on Economics 2084, London School of Economics and Political Science, LSE Library.
  4. James E. Foster & Artyom A. Shneyerov, 1999. "A general class of additively decomposable inequality measures," Economic Theory, Springer, vol. 14(1), pages 89-111.
  5. Vitorocco Peragine, . "Measuring and Implementing Equality of Opportunity for Income," Discussion Papers 98/11, Department of Economics, University of York.
  6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  7. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," Journal of Economic Inequality, Springer, vol. 8(4), pages 429-450, December.
  8. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February.
  9. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
  10. repec:ebl:ecbull:v:4:y:2003:i:29:p:1-12 is not listed on IDEAS
  11. Charles Blackorby & David Donaldson & Maria Auersperg, 1981. "A New Procedure for the Measurement of Inequality within and among Population Subgroups," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 665-85, November.
  12. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
  13. Chantreuil, F. & Trannoy, A., 1999. "Inequality Decomposition Values: the Trade-Off Between Marginality and Consistency," Papers 99-24, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
  14. Silber, Jacques, 1993. "Inequality Decomposition by Income," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 545-47, August.
  15. Mª Casilda Lasso de la Vega & Ana Marta Urrutia, 2005. "Path independent multiplicatively decomposable inequality measures," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 379-387, May.
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