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Measurement of inequality of opportunity based on counterfactuals

Author

Listed:
  • Dirk Van de gaer

    (Ghent University
    CORE, UCL
    Universitat Autònoma de Barcelona Campus)

  • Xavier Ramos

    (Universitat Autònoma de Barcelona
    EQUALITAS
    IZA)

Abstract

The theoretical literature on inequality of opportunity formulates basic properties that measures of inequality of opportunity should have. Standard methods for the measurement of inequality of opportunity determine the inequality in counterfactual outcome distributions that are constructed by statistical methods. We show that, when standard parametric procedures are used to construct the counterfactuals, the choice of inequality measurement method and the statistical specification interact to determine whether the resulting measure of inequality of opportunity satisfies the basic properties.

Suggested Citation

  • Dirk Van de gaer & Xavier Ramos, 2020. "Measurement of inequality of opportunity based on counterfactuals," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 595-627, October.
    • Handle: RePEc:spr:sochwe:v:55:y:2020:i:3:d:10.1007_s00355-020-01261-3
    DOI: 10.1007/s00355-020-01261-3
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    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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