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Economic Growth and equality of opportunity

Listed author(s):
  • Peragine, Vito
  • Palmisano, Flaviana
  • Brunori, Paolo

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.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6599.

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Date of creation: 01 Sep 2013
Handle: RePEc:wbk:wbrwps:6599
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  6. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 429-450, December.
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  18. Nilsson, William, 2005. "Opportunities, Preferences and Incomes," Umeå Economic Studies 649, Umeå University, Department of Economics.
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  34. 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.
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  37. Son, Hyun Hwa, 2004. "A note on pro-poor growth," Economics Letters, Elsevier, vol. 82(3), pages 307-314, March.
  38. Rolf Aaberge, 2000. "Characterizations of Lorenz curves and income distributions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(4), pages 639-653.
  39. B. Essama-Nssah & Peter J. Lambert, 2009. "Measuring Pro-Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, 09.
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