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A Dissimilarity Index of Multidimensional Inequality of Opportunity (Revised and Updated)

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  • Gaston Yalonetzky

Abstract

A recent literature on inequality of opportunity offers quantitative tools for comparisons and measurement based on stochastic dominance criteria and traditional inequality indices. In this paper I suggest an additional way of assessing inequality of opportunity with two indices of dissimilarity across distributions. The indices are based on a traditional homogeneity test of multinomial distributions and are similar to the square coefficient of variation (Reardon and Firebaugh, 2002). Their properties are studied, as well as their usefulness and limitations in applications when both circumstances and advantages/outcomes are multidimensional. An empirical application measures changes in inequality of opportunity from an old to a young cohort in Peru. The importance of assessing the sensitivity of the results to group definitions and group proportions is highlighted.

Suggested Citation

  • Gaston Yalonetzky, 2010. "A Dissimilarity Index of Multidimensional Inequality of Opportunity (Revised and Updated)," OPHI Working Papers 39, Queen Elizabeth House, University of Oxford.
    • Handle: RePEc:qeh:ophiwp:ophiwp0039
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    References listed on IDEAS

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    3. Asadullah, M. Niaz & Yalonetzky, Gaston, 2012. "Inequality of Educational Opportunity in India: Changes Over Time and Across States," World Development, Elsevier, vol. 40(6), pages 1151-1163.
    4. Florian Wendelspiess Ch�vez Ju�rez, 2015. "Measuring Inequality of Opportunity with Latent Variables," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 16(1), pages 106-121, February.

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