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Inequality of Opportunities: The Role of the Spatial Factor

Author

Listed:
  • Zulfiya Fanurovna Ibragimova

    (Bashkir State University)

  • Marina Valeryevna Frants

    (Ufa State Aviation Technical University)

Abstract

The concept of equal opportunities was shaped on the back of western social philosophy at the end of the XX century as a result of the development of egalitarian theory of social justice. According to it, the determinants of individual achievements should be divided into two categories: ‘circumstances’, which individual has no control on, and ‘efforts’, which individuals should be responsible for. Our research deals with measuring opportunity inequality in the Russian Federation and its regions. The regions of the Russian Federation are well known to be very heterogeneous, consequently, the variation of their social and economic indicators is significant. As a result, the level of opportunity inequality may fluctuate significantly among the regions. Our research is designed to test the hypothesis. The analysis is based on the data from the survey ‘Survey of Income and Participation in Social Programs’ conducted by the Federal state statistics service of the Russian Federation. The estimation technique is parametric and based on the ex-ante definition of equality of opportunity. The mean logarithmic deviation is used as inequality index. According to our calculations, the contribution of opportunity inequality to the labor income inequality in Russia is approximately 30%. Spatial factors (region of residence and type of settlement) are responsible for nearly 70% of opportunity inequality. Absolute level of opportunity inequality varies widely among regions – from 0,0117 to 0,0547 in 2017. The contribution of opportunity inequality to inequality of labor income ranges from 7,24 to 27,35% in 2017 across regions. The growth of opportunity inequality is shown to be correlated with the decrease of the economic development rate and the increase of labor income inequality

Suggested Citation

  • Zulfiya Fanurovna Ibragimova & Marina Valeryevna Frants, 2020. "Inequality of Opportunities: The Role of the Spatial Factor," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 44-67.
    • Handle: RePEc:far:spaeco:y:2020:i:4:p:44-67
    DOI: https://dx.doi.org/10.14530/se.2020.4.044-067
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    References listed on IDEAS

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    1. Zulfiya Ibragimova & Marina Frants, 2019. "Inequality of opportunity in the Russian Federation: Measurement and evaluation using micro-data," Applied Econometrics, Russian Academy of National Economy and Public Administration (RANEPA), vol. 54, pages 5-25.
    2. Checchi, Daniele & Peragine, Vito, 2005. "Regional Disparities and Inequality of Opportunity: The Case of Italy," IZA Discussion Papers 1874, IZA Network @ LISER.
    3. Ana Suárez à lvarez & Ana Jesús López Menéndez, 2020. "Inequality and Opportunities in the Spanish Regions: The Role of Immigration," International Regional Science Review, , vol. 43(6), pages 655-680, November.
    4. Jean-François Carpantier & Christelle Sapata, 2013. "An Ex-Post View of Inequality of Opportunity in France and its Regions," Journal of Labor Research, Springer, vol. 34(3), pages 281-311, September.
    5. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    6. Ibragimova, Zulfiya (Ибрагимова, Зульфия Фануровна) & Frants, Marina (Франц, Марина Валерьевна), 2020. "Inequality of Opportunity: Theory and Practice of Measurement Using RLMS-HSE Microdata [Неравенство возможностей: теория и практика измерения на микроданных rlms-hse]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 64-89, February.
    7. Francisco H.G. Ferreira & Jérémie Gignoux, 2011. "The Measurement of Inequality of Inequality of Opportunity: Theory and an Application to Latin America," Post-Print halshs-00754503, HAL.
    8. Francisco H. G. Ferreira & Jérémie Gignoux, 2011. "The Measurement Of Inequality Of Opportunity: Theory And An Application To Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 622-657, December.
    9. Jesus Perez‐Mayo, 2019. "Inequality of opportunity, a matter of space?," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(1), pages 71-87, March.
    10. Xavier Ramos & Dirk gaer, 2016. "Approaches To Inequality Of Opportunity: Principles, Measures And Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 30(5), pages 855-883, December.
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    Cited by:

    1. Vera Barinova & Sylvie Rochhia & Stepan Zemtsov, 2022. "Attracting highly skilled migrants to the Russian regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(1), pages 147-173, February.

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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