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Discrimination and Equality of Opportunity

Author

Listed:
  • J. Ignacio García-Pérez

    () (Universidad Pablo de Olavide, FEDEA & FCEA)

  • Antonio Villar

    () (Universidad Pablo de Olavide & Ivie)

Abstract

This paper presents a measure of social discrimination based on the principle of equality of opportunity. According to this principle we only have to care about the inequality derived from people’s differential circumstances (and not about outcome differences due to people’s diverse degree of effort). We propose approaching the measurement of group discrimination as the “welfare loss” attributed to the inequality between social groups of similar characteristics. We also provide an empirical application to the analysis of gender discrimination in the European labour market. We estimate wage equations to breakdown wage gaps and to control for extra individual heterogeneity. Given these predictions, we compute the index of welfare loss due to gender discrimination.

Suggested Citation

  • J. Ignacio García-Pérez & Antonio Villar, 2009. "Discrimination and Equality of Opportunity," Working Papers 09.05, Universidad Pablo de Olavide, Department of Economics.
  • Handle: RePEc:pab:wpaper:09.05
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    File URL: http://www.upo.es/serv/bib/wps/econ0905.pdf
    File Function: First version, 2009
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    References listed on IDEAS

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    1. Cowell, Frank A. & Kuga, Kiyoshi, 1981. "Additivity and the entropy concept: An axiomatic approach to inequality measurement," Journal of Economic Theory, Elsevier, vol. 25(1), pages 131-143, August.
    2. Marc Fleurbaey & François Maniquet, 2006. "Compensation and responsibility," Working Papers halshs-00121367, HAL.
    3. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    4. Javier Ruiz-Castillo, 1995. "Income distribution and social welfare: a review essay," Investigaciones Economicas, Fundación SEPI, vol. 19(1), pages 3-34, January.
    5. Foster, James E., 1983. "An axiomatic characterization of the Theil measure of income inequality," Journal of Economic Theory, Elsevier, vol. 31(1), pages 105-121, October.
    6. Mora, Ricardo & Ruiz-Castillo, Javier, 2000. "Gender segregation : from birth to occupation," UC3M Working papers. Economics 9921, Universidad Carlos III de Madrid. Departamento de Economía.
    7. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    8. Peragine, Vitorocco, 2002. "Opportunity egalitarianism and income inequality," Mathematical Social Sciences, Elsevier, vol. 44(1), pages 45-64, September.
    9. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    10. Villar Antonio, 2005. "On the Welfare Evaluation of Income and Opportunity," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 5(1), pages 1-21, June.
    11. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
    12. José María Tomás Adrian & Antonio Villar, 1993. "La medición del bienestar mediante indicadores de renta real: caracterización de un índice de bienestar tipo Theil," Investigaciones Economicas, Fundación SEPI, vol. 17(1), pages 165-173, January.
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    Cited by:

    1. Andrés Cendales, 2012. "Vote Buying, Political Patronage and Selective Plunder," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 237-276, November.
    2. Andrés Cendales & Jhon James Mora, 2015. "Sobornos o representación democrática: ¿qué promueven los concejos municipales en una democracia precaria en el nivel local?," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, March.

    More about this item

    Keywords

    Equality of opportunity; welfare losses; gender discrimination; wage equations.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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