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Measuring inequality of opportunity with imperfect data: The case of Turkey

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Listed:
  • Francisco Ferreira

    (The World Bank)

  • Jérémie Gignoux

    (Paris School of Economics)

  • Meltem Aran

    (University of 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 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, the between-type share of overall inequality is computed as a lower bound estimator of inequality of opportunity. Parametric and non-parametric estimates are calculated for both methods, 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 Ferreira & Jérémie Gignoux & Meltem Aran, 2010. "Measuring inequality of opportunity with imperfect data: The case of Turkey," Working Papers 161, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2010-161
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    More about this item

    Keywords

    Inequality of opportunity; wealth index; imputed consumption; Turkey;
    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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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