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Measurement of Inequality of Opportunity Based on Counterfactuals

Listed author(s):
  • Van de gaer, Dirk

    ()

    (Ghent University)

  • Ramos, Xavier

    ()

    (Universitat Autònoma de Barcelona)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 9582.

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Length: 52 pages
Date of creation: Dec 2015
Handle: RePEc:iza:izadps:dp9582
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  1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, October.
  2. Bossert W., 1996. "Redistribution mechanisms based on individual characteristics," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 51-51, February.
  3. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 429-450, December.
  4. Marc Fleurbaey & Vito Peragine, 2013. "Ex Ante Versus Ex Post Equality of Opportunity," Economica, London School of Economics and Political Science, vol. 80(317), pages 118-130, 01.
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  6. Judith Niehues & Andreas Peichl, 2014. "Upper bounds of inequality of opportunity: theory and evidence for Germany and the US," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 73-99, June.
  7. Ashish Singh, 2012. "Inequality Of Opportunity In Earnings And Consumption Expenditure: The Case Of Indian Men," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(1), pages 79-106, 03.
  8. Pedro Rosa Dias, 2009. "Inequality of opportunity in health: evidence from a UK cohort study," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 1057-1074.
  9. Roland Luttens & Dirk gaer, 2007. "Lorenz Dominance and Non-welfaristic Redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(2), pages 281-302, February.
  10. Layard, R. & Mayraz, G. & Nickell, S., 2008. "The marginal utility of income," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1846-1857, August.
  11. Francisco H. G. Ferreira & Jérémie Gignoux, 2014. "The Measurement of Educational Inequality: Achievement and Opportunity," World Bank Economic Review, World Bank Group, vol. 28(2), pages 210-246.
  12. François Bourguignon & Francisco H. G. Ferreira & Marta Menéndez, 2007. "Inequality Of Opportunity In Brazil," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(4), pages 585-618, December.
  13. Marc Fleurbaey & François Maniquet, 2005. "Fair social orderings when agents have unequal production skills," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 24(1), pages 93-127, 09.
  14. Nadia Belhaj Hassine, 2012. "Inequality of Opportunity in Egypt," World Bank Economic Review, World Bank Group, vol. 26(2), pages 265-295.
  15. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
  16. Alain Trannoy & Sandy Tubeuf & Florence Jusot & Marion Devaux, 2010. "Inequality of opportunities in health in France: a first pass," Health Economics, John Wiley & Sons, Ltd., vol. 19(8), pages 921-938, August.
  17. Fleurbaey, Marc & Schokkaert, Erik, 2009. "Unfair inequalities in health and health care," Journal of Health Economics, Elsevier, vol. 28(1), pages 73-90, January.
  18. Almås, Ingvild & Cappelen, Alexander W. & Lind, Jo Thori & Sørensen, Erik Ø. & Tungodden, Bertil, 2011. "Measuring unfair (in)equality," Journal of Public Economics, Elsevier, vol. 95(7), pages 488-499.
  19. Donal O'Neill & Olive Sweetman & Dirk van de gaer, 1999. "Equality of Opportunity and Kernel Density Estimation: An Application to Intergenerational Mobility," Economics, Finance and Accounting Department Working Paper Series n950999, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  20. Marc Fleurbaey & Walter Bossert, 1996. "Redistribution and compensation (*)," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(3), pages 343-355.
  21. Miguel Nathan Foguel & Fernando Veloso, 2011. "Inequality Of Opportunity Of Daycare Andpreschool Services In Brazil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 129, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  22. Brunori, Paolo & Peragine, Vito & Serlenga, Laura, 2012. "Fairness in education: The Italian university before and after the reform," Economics of Education Review, Elsevier, vol. 31(5), pages 764-777.
  23. Fleurbaey, Marc & Michel, Philippe, 2001. "Transfer principles and inequality aversion, with an application to optimal growth," Mathematical Social Sciences, Elsevier, vol. 42(1), pages 1-11, July.
  24. Gandelman, Néstor & Hernández-Murillo, Rubén, 2013. "What do happiness and health satisfaction data tell us about relative risk aversion?," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 301-312.
  25. Miguel Foguel & Fernando Veloso, 2014. "Inequality of opportunity in daycare and preschool services in Brazil," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 191-220, June.
  26. Nicolas Pistolesi, 2009. "Inequality of opportunity in the land of opportunities, 1968–2001," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(4), pages 411-433, December.
  27. M. Fleurbaey & F. Maniquet, 2008. "Fair social orderings," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 34(1), pages 25-45, January.
  28. repec:dau:papers:123456789/268 is not listed on IDEAS
  29. Kurt Devooght, 2008. "To Each the Same and to Each his Own: A Proposal to Measure Responsibility-Sensitive Income Inequality," Economica, London School of Economics and Political Science, vol. 75(298), pages 280-295, 05.
  30. Gustavo A. Marrero & Juan Gabriel Rodríguez, 2012. "Inequality of Opportunity in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(4), pages 597-621, December.
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