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Lower and Upper Bounds of Inequality of Opportunity in Emerging Economies

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  • Paul Hufe
  • Andreas Peichl
  • Daniel Weishaar

Abstract

Equality of opportunity is an important normative ideal that concerns politicians and the larger public alike. In spite of its wide acceptance, current estimation approaches in the literature suffer from severe data restrictions that lead to biased estimates of inequality of opportunity. These shortcomings are particularly pronounced for emerging economies in which comprehensive household survey data often is unavailable. In this paper, we address these issues by estimating lower and upper bounds of inequality of opportunity for a set of emerging economies. Thereby, we address recent critiques that worry about the prevalence of lower bound estimates and the ensuing scope for downplaying the normative significance of inequality.

Suggested Citation

  • Paul Hufe & Andreas Peichl & Daniel Weishaar, 2019. "Lower and Upper Bounds of Inequality of Opportunity in Emerging Economies," ifo Working Paper Series 301, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_301
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    References listed on IDEAS

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    1. Ravi Kanbur & Adam Wagstaff, 2016. "How Useful Is Inequality of Opportunity as a Policy Construct?," International Economic Association Series, in: Kaushik Basu & Joseph E. Stiglitz (ed.), Inequality and Growth: Patterns and Policy, chapter 4, pages 131-150, Palgrave Macmillan.
    2. Judith Niehues & Andreas Peichl, 2012. "Bounds of Unfair Inequality of Opportunity: Theory and Evidence for Germany and the US," CESifo Working Paper Series 3815, CESifo.
    3. Faravelli, Marco, 2007. "How context matters: A survey based experiment on distributive justice," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1399-1422, August.
    4. Paul Hufe & Andreas Peichl & John Roemer & Martin Ungerer, 2017. "Inequality of income acquisition: the role of childhood circumstances," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 499-544, December.
    5. Andreas Peichl & Martin Ungerer, 2016. "Accounting for the spouse when measuring inequality of opportunity," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(3), pages 607-631, October.
    6. Florence Jusot & Sandy Tubeuf & Alain Trannoy, 2013. "Circumstances And Efforts: How Important Is Their Correlation For The Measurement Of Inequality Of Opportunity In Health?," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1470-1495, December.
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    8. Paolo Brunori & Paul Hufe & Daniel Gerszon Mahler, 2017. "The Roots of Inequality: Estimating Inequality of Opportunity from Regression Trees," Working Papers - Economics wp2017_18.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    9. Kaushik Basu & Joseph E. Stiglitz (ed.), 2016. "Inequality and Growth: Patterns and Policy," International Economic Association Series, Palgrave Macmillan, number 978-1-137-55459-8, January.
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    11. 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.
    12. Francesco Andreoli & Tarjei Havnes & Arnaud Lefranc, 2019. "Robust Inequality of Opportunity Comparisons: Theory and Application to Early Childhood Policy Evaluation," The Review of Economics and Statistics, MIT Press, vol. 101(2), pages 355-369, May.
    13. International Panel on Social Progress (IPSP),, 2018. "Rethinking Society for the 21st Century," Cambridge Books, Cambridge University Press, number 9781108423144, December.
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    15. International Panel on Social Progress (IPSP),, 2018. "Rethinking Society for the 21st Century," Cambridge Books, Cambridge University Press, number 9781108436342, December.
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    Cited by:

    1. Vincenzo Carrieri & Apostolos Davillas & Andrew M. Jones, 2020. "A latent class approach to inequity in health using biomarker data," Health Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 808-826, July.
    2. Rafael Carranza, 2020. "Upper and lower bound estimates of inequality of opportunity: A cross-national comparison for Europe," Working Papers 511, ECINEQ, Society for the Study of Economic Inequality.
    3. Dai, Xinchen & Li, Jing, 2021. "Inequality of opportunity in China: Evidence from pseudo panel data," China Economic Review, Elsevier, vol. 68(C).

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    More about this item

    Keywords

    Equality of opportunity; inequality; emerging economies;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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