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Measuring Inequality of Opportunity with Imperfect Data: the case of Turkey

Author

Listed:
  • Francisco H.G. Ferreira

    (Banque Mondiale - Banque Mondiale)

  • Jérémie Gignoux

    () (PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - EHESS - École des hautes études en sciences sociales - INRA - Institut National de la Recherche Agronomique - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres, PSE - Paris School of Economics)

  • Meltem Aran

    (Oxford University - University of Oxford [Oxford])

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).

Suggested Citation

  • Francisco H.G. Ferreira & Jérémie Gignoux & Meltem Aran, 2011. "Measuring Inequality of Opportunity with Imperfect Data: the case of Turkey," Post-Print halshs-00754497, HAL.
  • Handle: RePEc:hal:journl:halshs-00754497
    DOI: 10.1007/s10888-011-9169-0
    Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754497
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    Keywords

    Inequality of opportunity; Wealth index; Imputed consumption; Turkey;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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