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Measurement of inequality of opportunity based on counterfactuals

Author

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  • Dirk Van de gaer

    (Department of Social Economics, Ghent University, Belgium)

  • Xavier Ramos

    (Depart Econ Aplicada, Universitat Autonoma de Barcelona, Spain)

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 require the construction of counterfactual outcome distributions through statistical methods. We show that, when standard parametric procedures are used to construct the counterfactuals, the specification used determines whether the resulting measures of inequality of opportunity satisfy the basic properties.

Suggested Citation

  • Dirk Van de gaer & Xavier Ramos, 2015. "Measurement of inequality of opportunity based on counterfactuals," Working Papers 388, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2015-388
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2015-388.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Counterfactuals; inequality measurement; opportunities.;
    All these keywords.

    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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