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A dissimilarity index of multidimensional inequality of opportunity

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  • Gaston Yalonetzky

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Abstract

A recent literature on inequality of opportunity offers quantitative tools for comparisons and measurement based on stochastic dominance criteria and traditional inequality indices. In this paper I suggest an additional way of assessing inequality of opportunity with two indices of dissimilarity across distributions. The indices are based on a traditional homogeneity test of multinomial distributions and are similar to the square coefficient of variation (Reardon and Firebaugh, Sociol Method 32:33–67, 2002 ). Their properties are studied, as well as their usefulness and limitations in applications when both circumstances and advantages/outcomes are multidimensional. An empirical application measures changes in inequality of opportunity from an old to a young cohort in Peru. The importance of assessing the sensitivity of the results to group definitions and group proportions is highlighted. Copyright Springer Science+Business Media, LLC. 2012

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File URL: http://hdl.handle.net/10.1007/s10888-010-9162-z
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Article provided by Springer & Society for the Study of Economic Inequality in its journal The Journal of Economic Inequality.

Volume (Year): 10 (2012)
Issue (Month): 3 (September)
Pages: 343-373

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Handle: RePEc:kap:jecinq:v:10:y:2012:i:3:p:343-373
DOI: 10.1007/s10888-010-9162-z
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Keywords: Inequality of opportunity; Dissimilarity index;

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  1. Jaime Saavedra-Chanduví & José R. Molinas & Ricardo Paes de Barros & Francisco H. G. Ferreira, 2009. "Measuring Inequality of Opportunities in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 60098, February.
  2. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
  3. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(3), pages 231-245, September.
  4. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591, April.
  5. Arnaud Lefranc & Nicolas Pistolesi & Alain Trannoy, 2008. "Inequality Of Opportunities Vs. Inequality Of Outcomes: Are Western Societies All Alike?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 513-546, December.
  6. Amartya Sen, 1976. "Real National Income," Review of Economic Studies, Oxford University Press, vol. 43(1), pages 19-39.
  7. repec:idb:brikps:60098 is not listed on IDEAS
  8. Hutchens, Robert, 2001. "Numerical measures of segregation: desirable properties and their implications," Mathematical Social Sciences, Elsevier, vol. 42(1), pages 13-29, July.
  9. 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.
  10. 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.
  11. Hild, Matthias & Voorhoeve, Alex, 2004. "Equality Of Opportunity And Opportunity Dominance," Economics and Philosophy, Cambridge University Press, vol. 20(01), pages 117-145, April.
  12. A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Oxford University Press, vol. 49(2), pages 183-201.
  13. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
  14. Thomas Bossuroy & Denis Cogneau & Victor Hiller, 2006. "Intergenerational mobility in five African countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00261495, HAL.
  15. Gaston Yalonetzky, 2009. "Comparing Economic Mobility with Heterogeneity Indices: An Application to Education in Peru," OPHI Working Papers ophiwp033, Queen Elizabeth House, University of Oxford.
  16. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
  17. Dagum, Camilo, 1987. "Measuring the Economic Affluence between Populations of Income Receivers," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 5-12, January.
  18. Ebert, Udo, 1984. "Measures of distance between income distributions," Journal of Economic Theory, Elsevier, vol. 32(2), pages 266-274, April.
  19. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
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Cited by:

  1. Johanna Fajardo-Gonzalez, 2016. "Inequality of opportunity in adult health in Colombia," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(4), pages 395-416, December.
  2. Fabio Waltenberg & Marcia De Carvalho & Luis Fernando Gamboa, 2016. "Measuring Inequality Of Opportunity In Education By Combining Information On Coverage And Achievement In Pisa," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42ndd Brazilian Economics Meeting] 218, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  3. Asadullah, M. Niaz & Yalonetzky, Gaston, 2012. "Inequality of Educational Opportunity in India: Changes Over Time and Across States," World Development, Elsevier, vol. 40(6), pages 1151-1163.

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