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Measuring inequality of opportunity with imperfect data: the case of Turkey

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  • Francisco Ferreira

    ()

  • Jérémie Gignoux
  • Meltem Aran

Abstract

The measurement of inequality of opportunity has hitherto not been attempted in a number of countries because of data limitations. This paper proposes two alternative approaches to circumventing the missing data problems in countries where a demographic and health survey (DHS) and an ancillary household expenditure survey are available. One method relies only on the DHS, and constructs a wealth index as a measure of economic advantage. The alternative method imputes consumption from the ancillary survey into the DHS. In both cases, we compute a lower bound estimator of the share of (ex-ante) inequality of opportunity in total inequality. Parametric and non-parametric estimates are calculated for each method, and the parametric approach is shown to yield preferable lower-bound measures. In an application to the sample of ever-married women aged 30-49 in Turkey, inequality of opportunity accounts for at least 26% (31%) of overall inequality in imputed consumption (the wealth index).
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Suggested Citation

  • Francisco Ferreira & Jérémie Gignoux & Meltem Aran, 2011. "Measuring inequality of opportunity with imperfect data: the case of Turkey," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 651-680, December.
  • Handle: RePEc:kap:jecinq:v:9:y:2011:i:4:p:651-680
    DOI: 10.1007/s10888-011-9169-0
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    Keywords

    Inequality of opportunity; Wealth index; Imputed consumption; Turkey; D31; D63; J62;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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