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A Gini approach to inequality of opportunity: evidence from the PSID

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  • Antonio Abatemarco

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Abstract

Given (pragmatic) partial ordering criteria for the comparison of individuals in terms of both circumstances and responsible choices, a Gini-based approach is proposed for the measurement of opportunity inequality and its (relative) contribution to outcome inequality. An application to US income distributions from 1999 to 2009 is also discussed. Given six circumstance variables (gender, health, economic condition of parents in the early years, ethnicity, IQ score in the early years and unemployment rate in the place of origin), opportunity inequality is found to account for between 15.0 and 16.6 % of outcome inequality from 1999 to 2009 with a U-shaped pattern over time, supporting existing evidence on the inequality implications of financial crises. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Antonio Abatemarco, 2015. "A Gini approach to inequality of opportunity: evidence from the PSID," Empirical Economics, Springer, vol. 49(4), pages 1497-1519, December.
  • Handle: RePEc:spr:empeco:v:49:y:2015:i:4:p:1497-1519
    DOI: 10.1007/s00181-015-0918-y
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    File URL: http://hdl.handle.net/10.1007/s00181-015-0918-y
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    References listed on IDEAS

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    Cited by:

    1. Abatemarco, Antonio, 2016. "Doing rawls justice: Evidence from the PSID," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 10, pages 1-39.
    2. Antonio Abatemarco, 2016. "Evaluating economic mobility under opportunity egalitarianism," Working Papers 396, ECINEQ, Society for the Study of Economic Inequality.

    More about this item

    Keywords

    Inequality; Opportunity; Measurement; Gini; D63; D31;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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