On the welfare loss caused by inequality of opportunity View Full Text


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Article Info

DATE

2014-06

AUTHORS

Aitor Calo-Blanco, J. Ignacio García-Pérez

ABSTRACT

Based on the ethical principle of equality of opportunity, this paper presents a measure of the welfare loss that is caused by an unfair distribution of a particular outcome (income, health, education, etc). The key idea is that a fair society should produce outcomes that depend on individuals’ effort and not on their external circumstances such as gender, socioeconomic background, etc. We propose measuring inequality of opportunity as the welfare loss attributed to the outcome differences among individuals who exert a similar level of effort. Our results are in line with those aspects of fairness literature that give priority to the ex post compensation approach to equality of opportunity. Finally, we present an empirical application for the measurement of the welfare loss in the income distribution in Europe. We have observed a high degree of heterogeneity among European countries. The welfare loss due to inequality of opportunity ranges in those, from basically zero to almost one fifth of their potential welfare. More... »

PAGES

221-237

References to SciGraph publications

  • 2012-07. Equality of opportunity and the distribution of long-run income in Sweden in SOCIAL CHOICE AND WELFARE
  • 1989-05. Equality and equal opportunity for welfare in PHILOSOPHICAL STUDIES
  • 2003-08. Additively Decomposable Segregation Indexes. The Case of Gender Segregation by Occupations and Human Capital Levels in Spain in THE JOURNAL OF ECONOMIC INEQUALITY
  • 2009-12. Inequality of opportunity in the land of opportunities, 1968–2001 in THE JOURNAL OF ECONOMIC INEQUALITY
  • 1994-05. On fair compensation in THEORY AND DECISION
  • 2010-12. Inequality of opportunity in Italy in THE JOURNAL OF ECONOMIC INEQUALITY
  • 2004-04. Ranking Income Distributions According to Equality of Opportunity in THE JOURNAL OF ECONOMIC INEQUALITY
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    URI

    http://scigraph.springernature.com/pub.10.1007/s10888-013-9247-6

    DOI

    http://dx.doi.org/10.1007/s10888-013-9247-6

    DIMENSIONS

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