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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 ophiwp0039, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:ophiwp:ophiwp0039
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    File URL: http://www3.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP039.pdf
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    1. Ricardo Paes de Barros & Francisco H.G. Ferreira & Jose R. Molinas Vega & Jaime Saavedra Chanduvi, 2009. "Measuring Inequality of Opportunities in Latin America and the Caribbean," World Bank Publications, The World Bank, number 2580.
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    7. Lefranc, Arnaud & Pistolesi, Nicolas & Trannoy, Alain, 2009. "Equality of opportunity and luck: Definitions and testable conditions, with an application to income in France," Journal of Public Economics, Elsevier, pages 1189-1207.
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    12. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
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    Cited by:

    1. Kinateder, Markus & Kiss, Hubert János, 2014. "Sequential decisions in the Diamond–Dybvig banking model," Journal of Financial Stability, Elsevier, vol. 15(C), pages 149-160.
    2. Asadullah, M. Niaz & Yalonetzky, Gaston, 2012. "Inequality of Educational Opportunity in India: Changes Over Time and Across States," World Development, Elsevier, pages 1151-1163.
    3. Carmen Herrero & Antonio Villar, 2012. "On the comparison of group performance with categorical Data," Working Papers 12.03, Universidad Pablo de Olavide, Department of Economics.

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