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A Dissimilarity Index of Multidimensional Inequality of Opportunity

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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 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.

Suggested Citation

  • Gaston Yalonetzky, 2009. "A Dissimilarity Index of Multidimensional Inequality of Opportunity," OPHI Working Papers ophiwp028, Queen Elizabeth House, University of Oxford.
  • 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, June.
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    Cited by:

    1. Johanna Fajardo-Gonzalez, 2016. "Inequality of opportunity in adult health in Colombia," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(4), pages 395-416, December.
    2. 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.
    3. Fabio Waltenberg & Marcia De Carvalho & Luis Fernando Gamboa, 2016. "Measuring Inequality Of Opportunity In Education By Combining Information On Coverage And Achievement In Pisa," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 218, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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