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The Measurement of Inequality of Opportunity : Theory and an Application to Latin America

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Author(s)
Gignoux, Jérémie
Ferreira, Francisco H.G.
Keywords
POPULATION SUBGROUP
HOUSEHOLD HEAD
MULTIPLE EQUILIBRIA
LATIN AMERICAN
EQUAL OPPORTUNITIES
ECONOMIC SUCCESS
INEQUALITY AVERSION PARAMETER
HOUSEHOLD PER CAPITA INCOME
INEQUALITY IN EARNINGS
INTERNATIONAL BANK
ETHNIC GROUPS
ECONOMIES OF SCALE
POOR
INEQUALITY OF OPPORTUNITY
MEAN INCOME
EDUCATION LEVELS
ETHNIC MINORITY
RELATIVE IMPORTANCE
INCOMES
EQUALITY OF OPPORTUNITY
POVERTY PROFILE
POPULATION SHARE
CENTRAL AMERICA
PATH DEPENDENCE
ECONOMIC OPPORTUNITY
HOUSEHOLD INCOME
DISADVANTAGED GROUPS
RURAL
MEASUREMENT ERROR
INCOME DISTRIBUTION
INCOME DISTRIBUTIONS
DESCRIPTIVE STATISTICS
GINI COEFFICIENT
INCOME SHARES
DISCRIMINATION
UNEQUAL ACCESS
DATA SET
MEASURING INEQUALITY
LABOR FORCE
CONSUMPTION EXPENDITURES
DEVELOPING COUNTRIES
ECONOMIC CHARACTERISTICS
POLICY RESEARCH
FAMILIES
ECONOMIC GROWTH
ECONOMIC INEQUALITY
DATA SETS
DISTRIBUTION OF WELFARE
INEQUALITY
LABOR MARKET
HOUSEHOLD WELFARE
INEQUALITY MEASUREMENT
GENDER
DISTRIBUTION OF OUTCOMES
TAXATION
EMPIRICAL LITERATURE
LABOR FORCE PARTICIPATION
FAMILY INCOMES
HOUSEHOLD HEADS
HOUSEHOLD SURVEYS
PER CAPITA CONSUMPTION
POVERTY OUTCOMES
UNEQUAL OPPORTUNITIES
INCOME INEQUALITY
INTERNATIONAL COMPARABILITY
DISTRIBUTION OF OPPORTUNITIES
EARNINGS
DECOMPOSITION OF INEQUALITY
CONSUMPTION INEQUALITY
EXPENDITURE
MEASURE OF INEQUALITY
INCOME DIFFERENCES
FINANCIAL MARKETS
INEQUALITY MEASURE
PUBLIC POLICY
HOUSEHOLD SURVEY DATA
OVERALL INEQUALITY
MEASURES OF INEQUALITY
CENTRAL AMERICAN
SOCIAL MOBILITY
ECONOMIC THEORY
ECONOMIC REVIEW
NATIONAL SURVEYS
INEQUALITY MEASURES
MEAN LOG DEVIATION
FUNCTIONAL FORM
BETWEEN-GROUP INEQUALITY
INDIVIDUAL COUNTRIES
LEVELS OF INEQUALITY
ETHNIC MINORITIES
PUBLIC EXPENDITURES
GROUP INEQUALITIES
HOUSEHOLD CONSUMPTION PER CAPITA
HOUSEHOLD DATA
EMPIRICAL ESTIMATES
DISTRIBUTION FUNCTIONS
INTERGENERATIONAL MOBILITY
ECONOMIC PERFORMANCE
INEQUALITY DECOMPOSITION
COUNTERFACTUAL
DECOMPOSABLE INEQUALITY MEASURES
INCOME SHARE
INEQUALITY OF OPPORTUNITIES
INCOME DATA
EARNINGS INEQUALITY
INEQUALITY INDEX
GROUPS OF PEOPLE
PUBLIC EDUCATION
POSITIVE EFFECT
TOTAL INEQUALITY
PER CAPITA INCOME
RURAL AREAS
INDICES OF INEQUALITY
HOUSEHOLDS
PRIMARY EDUCATION
INEQUALITY TRAPS
HOUSEHOLD CONSUMPTION
POVERTY LINE
INEQUALITY AVERSION
HOUSEHOLD INCOMES
RURAL AREA
INDIVIDUAL INCOMES
AGRICULTURAL WORKERS
SIGNIFICANT DIFFERENCES
RESIDUAL TERM
HOUSEHOLD MEMBERS
ECONOMIC DEVELOPMENT
HOUSEHOLD SURVEY
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URI
http://hdl.handle.net/20.500.12424/513361
Online Access
http://hdl.handle.net/10986/6859
Abstract
What part of the inequality observed in
 a particular country is due to unequal opportunities, rather
 than to differences in individual efforts or luck? This
 paper estimates a lower bound for the opportunity share of
 inequality in labor earnings, household income per capita
 and household consumption per capita in six Latin American
 countries. Following John Roemer, the authors associate
 inequality of opportunity with outcome differences that can
 be accounted for by morally irrelevant pre-determined
 circumstances, such as race, gender, place of birth, and
 family background. Thus defined, unequal opportunities
 account for between 24 and 50 percent of inequality in
 consumption expenditure in the sample. Brazil and Central
 America are more opportunity-unequal than Colombia, Ecuador,
 or Peru. "Opportunity profiles," which identify
 the social groups with the most limited opportunity sets,
 are shown to be distinct from poverty profiles: ethnic
 origin and the geography of birth are markedly more
 important as determinants of opportunity deprivation than of
 outcome poverty, particularly in Brazil, Guatemala, and Peru.
Date
2012-06-01
Type
Publications & Research
Identifier
oai:openknowledge.worldbank.org:10986/6859
http://hdl.handle.net/10986/6859
Copyright/License
CC BY 3.0 IGO
Collections
Gender and Theology

entitlement

 

Related items

Showing items related by title, author, creator and subject.

  • Thumbnail

    Measuring Inequality of
 Opportunities in Latin America and the Caribbean

    Molinas Vega, Jose R.; Paes de Barros, Ricardo; Saavedra Chanduvi, Jaime; Ferreira, Francisco H.G. (Washington, DC: World BankNew York: Palgrave Macmillan, 2009)
    Over the past decade, faster growth and
 smarter social policy have reversed the trend in Latin
 America's poverty. Too slowly and insufficiently, but
 undeniably, the percentage of Latinos who are poor has at
 long last begun to fall. This has shifted the political and
 policy debates from poverty toward inequality, something to
 be expected in a region that exhibits the world's most
 regressive distribution of development outcomes such as
 income, land ownership, and educational achievement. This
 book is a breakthrough in the measurement of human
 opportunity. It builds sophisticated formulas to answer a
 rather simple question: how much influence do personal
 circumstances have on the access that children get to the
 basic services that are necessary for a productive life?
 Needless to say, producing a methodology to measure human
 opportunity, and applying it across countries in one region,
 is just a first step. On the one hand, technical discussions
 and scientific vetting will continue, and refinements will
 surely follow. On the other, applying the new tool to a
 single country will allow for adjustments that make the
 findings much more useful to its policy realities. And
 fascinating comparative lessons could be learned by
 measuring human opportunity in developed countries across,
 say, the states of the United States or the nations of
 Europe. But the main message this book delivers remains a
 powerful one: it is possible to make equity a central
 purpose, if not the very definition, of development. That
 is, perhaps, it's most important contribution.
  • Thumbnail

    Measuring Inequality of Opportunities in Latin America and the Caribbean

    Molinas Vega, Jose R.; Ferreira, Francisco H. G.; Saavedra Chanduvi, Jaime; Paes de Barros, Ricardo (World Bank, 2009)
    Over the past decade, faster growth and smarter social policy have reversed the trend in Latin America's poverty. Too slowly and insufficiently, but undeniably, the percentage of Latinos who are poor has at long last begun to fall. This has shifted the political and policy debates from poverty toward inequality, something to be expected in a region that exhibits the world's most regressive distribution of development outcomes such as income, land ownership, and educational achievement. This book is a breakthrough in the measurement of human opportunity. It builds sophisticated formulas to answer a rather simple question: how much influence do personal circumstances have on the access that children get to the basic services that are necessary for a productive life? Needless to say, producing a methodology to measure human opportunity, and applying it across countries in one region, is just a first step. On the one hand, technical discussions and scientific vetting will continue, and refinements will surely follow. On the other, applying the new tool to a single country will allow for adjustments that make the findings much more useful to its policy realities. And fascinating comparative lessons could be learned by measuring human opportunity in developed countries across, say, the states of the United States or the nations of Europe. But the main message this book delivers remains a powerful one: it is possible to make equity a central purpose, if not the very definition, of development. That is, perhaps, it's most important contribution.
  • Thumbnail

    Measuring Inequality of Opportunity with Imperfect Data : The Case of Turkey

    Gignoux, Jeremie; Aran, Meltem; Ferreira, Francisco H.G. (World Bank, Washington, DC, 2014-09-02)
    The measurement of inequality of
 opportunity has hitherto not been attempted in a number of
 countries because of data limitations. This paper proposes
 two alternative approaches to circumventing the missing data
 problems in countries where a demographic and health survey
 and an ancillary household expenditure survey are available.
 One method relies only on the demographic and health survey,
 and constructs a wealth index as a measure of economic
 advantage. The alternative method imputes consumption from
 the ancillary survey into the demographic and health survey.
 In both cases, the between-type share of overall inequality
 is computed as a lower bound estimator of inequality of
 opportunity. Parametric and non-parametric estimates are
 calculated for both methods, and the parametric approach is
 shown to yield preferable lower-bound measures. In an
 application to the sample of ever-married women aged 30-49
 in Turkey, inequality of opportunity accounts for at least
 26 percent (31 percent) of overall inequality in imputed
 consumption (the wealth index).
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