IDEAS home Printed from https://ideas.repec.org/p/uab/wprdea/wpdea1803.html
   My bibliography  Save this paper

Equality of opportunity in four measures of well-being

Author

Listed:
  • Xavier Ramos Morilla

    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

  • Daniel Gerszon Mahler

    (World Bank)

Abstract

A growing literature has tried to measure the extent to which individuals have equal opportunities to acquire income. At the same time, policymakers have doubled down on e orts to go beyond income when designing policies to enhance well-being. We attempt to bridge these two areas by measuring the extent to which individuals have equal opportunities to achieve a high level of well-being. We use the German Socio-Economic Panel to measure well-being in four di erent ways including incomes. This makes it possible to determine if the way well-being is measured matters for identifying who the opportunity-deprived are and for tracking inequality of opportunity over time. We find that, regardless of how well-being is measured, the same people are opportunity-deprived and equality of opportunity has improved over the past 10 years. This suggests that going beyond income has little relevance if the objective is to provide equal opportunities.

Suggested Citation

  • Xavier Ramos Morilla & Daniel Gerszon Mahler, 2018. "Equality of opportunity in four measures of well-being," Working Papers wpdea1803, Department of Applied Economics at Universitat Autonoma of Barcelona.
  • Handle: RePEc:uab:wprdea:wpdea1803
    as

    Download full text from publisher

    File URL: https://ecap.uab.cat/RePEc/doc/wpdea1803.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, May.
    2. Akay, Alpaslan & Bargain, Olivier & Jara, Xavier, 2017. "Back to Bentham, Should We? Large-Scale Comparison of Experienced versus Decision Utility," IZA Discussion Papers 10907, Institute of Labor Economics (IZA).
    3. Koen Decancq & Marc Fleurbaey & Erik Schokkaert, 2015. "Happiness, Equivalent Incomes and Respect for Individual Preferences," Economica, London School of Economics and Political Science, vol. 82, pages 1082-1106, December.
    4. Bossert W., 1996. "Redistribution mechanisms based on individual characteristics," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 51-51, February.
    5. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2016. "Economic Growth Evens Out Happiness: Evidence from Six Surveys," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 405-419, September.
    6. Xavier Ramos & Dirk Van de gaer, 2021. "Is Inequality of Opportunity Robust to the Measurement Approach?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 18-36, March.
    7. 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.
    8. Alexander W. Cappelen & Bertil Tungodden, 2017. "Fairness and the proportionality principle," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 709-719, December.
    9. Betsey Stevenson & Justin Wolfers, 2008. "Happiness Inequality in the United States," The Journal of Legal Studies, University of Chicago Press, vol. 37(S2), pages 33-79, June.
    10. Magdalou, Brice & Nock, Richard, 2011. "Income distributions and decomposable divergence measures," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2440-2454.
    11. John E. Roemer & Alain Trannoy, 2016. "Equality of Opportunity: Theory and Measurement," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1288-1332, December.
    12. G.A. Cohen, 1990. "Equality of What? On Welfare, Goods and Capabilities," Discussion Papers (REL - Recherches Economiques de Louvain) 1990035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    13. Florence Jusot & Sandy Tubeuf & Alain Trannoy, 2013. "Circumstances And Efforts: How Important Is Their Correlation For The Measurement Of Inequality Of Opportunity In Health?," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1470-1495, December.
    14. Frank A. Cowell, 1985. "Measures of Distributional Change: An Axiomatic Approach," Review of Economic Studies, Oxford University Press, vol. 52(1), pages 135-151.
    15. Martin Ravallion, 2017. "Inequality and Poverty When Effort Matters," Econometrics, MDPI, vol. 5(4), pages 1-19, November.
    16. Fleurbaey, Marc & Schokkaert, Erik, 2009. "Unfair inequalities in health and health care," Journal of Health Economics, Elsevier, vol. 28(1), pages 73-90, January.
    17. Paolo Brunori & Paul Hufe & Daniel Gerszon Mahler, 2017. "The Roots of Inequality: Estimating Inequality of Opportunity from Regression Trees," Working Papers - Economics wp2017_18.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    18. Francisco H.G. Ferreira & Jérémie Gignoux, 2011. "The Measurement of Inequality of Inequality of Opportunity: Theory and an Application to Latin America," Post-Print halshs-00754503, HAL.
    19. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez & Nicholas Turner, 2014. "Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 141-147, May.
    20. repec:dau:papers:123456789/5065 is not listed on IDEAS
    21. Xavier Ramos & Dirk gaer, 2016. "Approaches To Inequality Of Opportunity: Principles, Measures And Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 30(5), pages 855-883, December.
    22. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, Oxford University Press, vol. 129(4), pages 1553-1623.
    23. Caterina Calsamiglia, 2009. "Decentralizing Equality Of Opportunity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 273-290, February.
    24. Daniel J. Benjamin & Ori Heffetz & Miles S. Kimball & Alex Rees-Jones, 2014. "Can Marginal Rates of Substitution Be Inferred from Happiness Data? Evidence from Residency Choices," American Economic Review, American Economic Association, vol. 104(11), pages 3498-3528, November.
    25. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2016. "Economic Growth Evens Out Happiness: Evidence from Six Surveys," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 405-419, September.
    26. Clark, Andrew E. & Oswald, Andrew J. & Warr, Peter B., 1994. "Is job satisfaction u-shaped in age ?," CEPREMAP Working Papers (Couverture Orange) 9407, CEPREMAP.
    27. Barnett,William A. & Moulin,Hervé & Salles,Maurice & Schofield,Norman J. (ed.), 1995. "Social Choice, Welfare, and Ethics," Cambridge Books, Cambridge University Press, number 9780521443401, May.
    28. Kurt Devooght, 2008. "To Each the Same and to Each his Own: A Proposal to Measure Responsibility‐Sensitive Income Inequality," Economica, London School of Economics and Political Science, vol. 75(298), pages 280-295, May.
    29. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2016. "Economic Growth Evens Out Happiness: Evidence from Six Surveys," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 405-419, September.
    30. Andrew E. Clark & Sarah Flèche & Claudia Senik, 2016. "Economic Growth Evens Out Happiness: Evidence from Six Surveys," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 405-419, September.
    31. Roemer, John E., 2012. "On Several Approaches To Equality Of Opportunity," Economics and Philosophy, Cambridge University Press, vol. 28(2), pages 165-200, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Equality of opportunity in four measures of well-being
      by maximorossi in NEP-LTV blog on 2019-11-25 22:27:53

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marko Ledić & Ivica Rubil, 2021. "Beyond Wage Gap, Towards Job Quality Gap: The Role of Inter-Group Differences in Wages, Non-Wage Job Dimensions, and Preferences," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 523-561, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dirk Van de gaer & Xavier Ramos, 2020. "Measurement of inequality of opportunity based on counterfactuals," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 595-627, October.
    2. Dirk Van de gaer & Xavier Ramos, 0. "Measurement of inequality of opportunity based on counterfactuals," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 0, pages 1-33.
    3. Kristof Bosmans & Z. Emel Öztürk, 2021. "Measurement of inequality of opportunity: A normative approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(2), pages 213-237, June.
    4. Paul Hufe & Andreas Peichl, 2020. "Beyond Equal Rights: Equality of Opportunity in Political Participation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(3), pages 477-511, September.
    5. John E. Roemer & Alain Trannoy, 2013. "Equality of Opportunity," Cowles Foundation Discussion Papers 1921, Cowles Foundation for Research in Economics, Yale University.
    6. John E. Roemer & Alain Trannoy, 2016. "Equality of Opportunity: Theory and Measurement," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1288-1332, December.
    7. Daniel Gerszon Mahler & Xavier Ramos, 2017. "Equality of opportunity for well-being," Working Papers 444, ECINEQ, Society for the Study of Economic Inequality.
    8. X. Ramos & D. Van De Gaer, 2012. "Empirical Approaches to Inequality of Opportunity: Principles, Measures, and Evidence," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/792, Ghent University, Faculty of Economics and Business Administration.
    9. Xavier Ramos & Dirk Van de gaer, 2021. "Is Inequality of Opportunity Robust to the Measurement Approach?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 18-36, March.
    10. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2018. "Assessing Changes Over Time in Inequality of Opportunity: The Case of Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 989-1014, October.
    11. Apostolos Davillas & Andrew M Jones, 2021. "The first wave of the COVID‐19 pandemic and its impact on socioeconomic inequality in psychological distress in the UK," Health Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 1668-1683, July.
    12. Hufe, Paul & Kanbur, Ravi & Peichl, Andreas, 2018. "Measuring Unfair Inequality: Reconciling Equality of Opportunity and Freedom from Poverty," IZA Discussion Papers 11601, Institute of Labor Economics (IZA).
    13. Davillas, Apostolos & Jones, Andrew M, 2020. "Ex ante inequality of opportunity in health, decomposition and distributional analysis of biomarkers," Journal of Health Economics, Elsevier, vol. 69(C).
    14. Xavier Ramos & Dirk Van de gaer, 2012. "Empirical approaches to inequality of opportunity: Principles, measures, and evidence," Working Papers 259, ECINEQ, Society for the Study of Economic Inequality.
    15. Ding, L. & Jones, A.M. & Nie, P., 2020. "Ex ante Inequality of Opportunity in Health among the Elderly in China: A Distributional Decomposition Analysis of Biomarkers," Health, Econometrics and Data Group (HEDG) Working Papers 20/10, HEDG, c/o Department of Economics, University of York.
    16. Rafael Carranza, 2020. "Upper and lower bound estimates of inequality of opportunity: A cross-national comparison for Europe," Working Papers 511, ECINEQ, Society for the Study of Economic Inequality.
    17. Baochun Peng & Haidong Yuan, 2021. "Dynamic Fairness: Mobility, Inequality, and the Distribution of Prospects," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(4), pages 1314-1338, October.
    18. Marko Ledić & Ivica Rubil, 2021. "Beyond Wage Gap, Towards Job Quality Gap: The Role of Inter-Group Differences in Wages, Non-Wage Job Dimensions, and Preferences," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 523-561, June.
    19. Michal Brzezinski, 2019. "Diagnosing Unhappiness Dynamics: Evidence from Poland and Russia," Journal of Happiness Studies, Springer, vol. 20(7), pages 2291-2327, October.
    20. Ciorbagiu Ioana & Stoica Adrian, 2020. "The Importance Of Affective And Cognitive Dimensions Of Happiness - Analysis In European Countries," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 138-148, December.

    More about this item

    Keywords

    Equality of opportunity; measurement; responsibility; e ort; well-being;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uab:wprdea:wpdea1803. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/dauabes.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dept. Economia Aplicada (email available below). General contact details of provider: https://edirc.repec.org/data/dauabes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.