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Economic Growth and equality of opportunity

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  • Peragine, Vito
  • Palmisano, Flaviana
  • Brunori, Paolo

Abstract

The paper proposes an approach to understand the relationship between inequality and economic growth obtained by shifting the analysis from the space of final achievements to the space of opportunities. To this end, it introduces a formal framework based on the concept of the Opportunity Growth Incidence Curve. This framework can be used to evaluate the income dynamics of specific groups of the population and to infer the role of growth in the evolution of inequality of opportunity over time. The paper shows the relevance of the introduced framework by providing two empirical analyses, one for Italy and the other for Brazil. These analyses show the distributional impact of the recent growth experienced by Brazil and the recent crisis suffered by Italy from both the income inequality and opportunity inequality perspectives.

Suggested Citation

  • Peragine, Vito & Palmisano, Flaviana & Brunori, Paolo, 2013. "Economic Growth and equality of opportunity," Policy Research Working Paper Series 6599, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6599
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    Cited by:

    1. Gordon Anderson & Oliver Linton & Grazia Pittau & Yoon Jae Whang & Roberto Zelli, 2020. "On Unit Free Assessment of The Extent of Multilateral Distributional Variation," Working Papers tecipa-657, University of Toronto, Department of Economics.
    2. Rajius Idzalika & Maria C. Lo Bue, 2016. "Opportunities in education: are factors outside individual responsibility really persistent? Evidence from Indonesia, 1997-2007," Working Papers 397, ECINEQ, Society for the Study of Economic Inequality.
    3. Paolo Brunori & Flaviana Palmisano & Vito Peragine, 2014. "Income taxation and equity: New dominance criteria and an application to Romania," Working Papers 348, ECINEQ, Society for the Study of Economic Inequality.
    4. Francisco H. G. Ferreira & Vito Peragine, 2015. "Equality of opportunity: Theory and evidence," Working Papers 359, ECINEQ, Society for the Study of Economic Inequality.
    5. Rougier, Eric, 2016. "“Fire in Cairo”: Authoritarian–Redistributive Social Contracts, Structural Change, and the Arab Spring," World Development, Elsevier, vol. 78(C), pages 148-171.
    6. Vito Peragine & Flaviana Palmisano & Paolo Brunori, 2014. "Economic Growth and Equality of Opportunity," World Bank Economic Review, World Bank Group, vol. 28(2), pages 247-281.
    7. Marc Fleurbaey & Vito Peragine & Xavier Ramos, 2017. "Ex post inequality of opportunity comparisons," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 577-603, December.
    8. Paolo Brunori & Flaviana Palmisano & Vito Peragine, 2015. "Inequality of opportunity during the great recession in Uganda," WIDER Working Paper Series 039, World Institute for Development Economic Research (UNU-WIDER).
    9. Joshua Greenstein, 2015. "New patterns of structural change and effects on inclusive development: A case study of South Africa and Brazil," WIDER Working Paper Series 006, World Institute for Development Economic Research (UNU-WIDER).
    10. Tiwari,Sailesh & Lara Ibarra,Gabriel & Narayan,Ambar, 2015. "How unfair is the inequality of wage earnings in Russia ? estimates from panel data," Policy Research Working Paper Series 7291, The World Bank.
    11. Flaviana Palmisano & Vito Peragine, 2015. "The Distributional Incidence of Growth: A Social Welfare Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 440-464, September.
    12. Francesco Farina, 2016. "The Path Dependency of Poverty Reduction Policies," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2016(1), pages 21-42.
    13. Carrieri, Vincenzo & Davillas, Apostolos & Jones, Andrew M., 2021. "Equality of Opportunity and the Expansion of Higher Education in the UK," IZA Discussion Papers 14485, Institute of Labor Economics (IZA).
    14. Paolo Li Donni & Juan Rodríguez & Pedro Rosa Dias, 2015. "Empirical definition of social types in the analysis of inequality of opportunity: a latent classes approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(3), pages 673-701, March.
    15. Herrera Jiménez, Alejandro & Villegas Quino, Horacio, 2016. "Circumstances and Determination of Individual Outcomes in Bolivia: Family Background and Equality of Opportunities (2003-2013)," Documentos de trabajo 1/2016, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    16. Hufe, Paul & Peichl, Andreas & Weishaar, Daniel, 2021. "Lower and Upper Bound Estimates of Inequality of Opportunity for Emerging Economies," IZA Discussion Papers 14680, Institute of Labor Economics (IZA).
    17. Brzezinski, Michal, 2018. "Income inequality and the Great Recession in Central and Eastern Europe," Economic Systems, Elsevier, vol. 42(2), pages 219-247.
    18. Gordon Anderson & Maria Grazia Pittau & Roberto Zelli, 2020. "Measuring the progress of equality of educational opportunity in absence of cardinal comparability," METRON, Springer;Sapienza Università di Roma, vol. 78(2), pages 155-174, August.
    19. Joshua Greenstein, 2015. "New patterns of structural change and effects on inclusive development: A case study of South Africa and Brazil," WIDER Working Paper Series wp-2015-006, World Institute for Development Economic Research (UNU-WIDER).
    20. Flaviana Palmisano, 2012. "The distributional incidence of growth: a non-anonymous and rank dependent approach," SERIES 0039, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Jul 2012.
    21. Paolo Brunori & Flaviana Palmisano & Vito Peragine, 2015. "Inequality of Opportunity During the Great Recession in Uganda," WIDER Working Paper Series wp-2015-039, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Achieving Shared Growth; Inequality; Economic Growth; Economic Theory&Research; Poverty Impact Evaluation;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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