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Measurement of inequality of opportunity based on counterfactuals

Author

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  • Van de gaer, Dirk
  • Ramos, Xavier

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.
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Suggested Citation

  • Van de gaer, Dirk & Ramos, Xavier, 2020. "Measurement of inequality of opportunity based on counterfactuals," LIDAM Reprints CORE 3122, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:3122
    Note: In : Social Choice and Welfare, doi.org/10.1007/s00355-020-01261-3
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    Cited by:

    1. Tzu-Ying Chen & Yi-Hsin Elsa Hsu & Rachel J. Huang & Larry Y. Tzeng, 2021. "Making socioeconomic health inequality comparisons when health concentration curves intersect," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(4), pages 875-899, November.

    More about this item

    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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