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A Dissimilarity Index of Multidimensional Inequality of Opportunity

Listed author(s):
  • Gaston Yalonetzky

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 and operationalizing Roemer’s (1998) notion of equality of opportunity with an index of dissimilarity across distributions. The index is based on a traditional homogeneity test of multinomial distributions and is more helpful than other tools when both circumstances and advantages/outcomes are multidimensional. It also highlights the correspondence between dissimilarity in outcomes across sets of circumstances and the degree of association between circumstances and outcomes. An empirical application measures changes in inequality of opportunity from an old to a young cohort in Peru. Creation-Date: 2009-02

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Paper provided by Queen Elizabeth House, University of Oxford in its series OPHI Working Papers with number ophiwp028.

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Handle: RePEc:qeh:ophiwp:ophiwp028
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  1. Jaime Saavedra-Chanduví & José R. Molinas & Ricardo Paes de Barros & Francisco H. G. Ferreira, 2009. "Measuring Inequality of Opportunities in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 361.
  2. Francisco H. G. Ferreira & Jérémie Gignoux, 2011. "The Measurement Of Inequality Of Opportunity: Theory And An Application To Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 622-657, December.
  3. 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.
  4. Hild, Matthias & Voorhoeve, Alex, 2004. "Equality Of Opportunity And Opportunity Dominance," Economics and Philosophy, Cambridge University Press, vol. 20(01), pages 117-145, April.
  5. A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Oxford University Press, vol. 49(2), pages 183-201.
  6. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(3), pages 231-245, September.
  7. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
  8. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
  9. 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, September.
  10. Thomas Bossuroy & Denis Cogneau & Victor Hiller, 2006. "Intergenerational mobility in five African countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00261495, HAL.
  11. Arnaud Lefranc & Nicolas Pistolesi & Alain Trannoy, 2008. "Inequality Of Opportunities Vs. Inequality Of Outcomes: Are Western Societies All Alike?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 513-546, December.
  12. Gaston Yalonetzky, 2009. "Comparing Economic Mobility with Heterogeneity Indices: An Application to Education in Peru," OPHI Working Papers ophiwp033, Queen Elizabeth House, University of Oxford.
  13. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
  14. Amartya Sen, 1976. "Real National Income," Review of Economic Studies, Oxford University Press, vol. 43(1), pages 19-39.
  15. repec:idb:brikps:60098 is not listed on IDEAS
  16. Dagum, Camilo, 1987. "Measuring the Economic Affluence between Populations of Income Receivers," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 5-12, January.
  17. Hutchens, Robert, 2001. "Numerical measures of segregation: desirable properties and their implications," Mathematical Social Sciences, Elsevier, vol. 42(1), pages 13-29, July.
  18. Vito Peragine, 2004. "Ranking Income Distributions According to Equality of Opportunity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(1), pages 11-30, April.
  19. Ebert, Udo, 1984. "Measures of distance between income distributions," Journal of Economic Theory, Elsevier, vol. 32(2), pages 266-274, April.
  20. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
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