Lower and Upper Bounds of Unfair Inequality: Theory and Evidence for Germany and the US

Arbeitspapier

Previous estimates of unfair inequality of opportunity (IOp) are only lower bounds because of the unobservability of the full set of endowed circumstances beyond the sphere of individual responsibility. In this paper, we suggest a new estimator based on a fixed effects panel model which additionally allows identifying an upper bound. We illustrate our approach by comparing Germany and the US based on harmonized micro data. We find significant and robust differences between lower and upper bound estimates - both for gross and net earnings based either on periodical or permanent income - for both countries. We discuss the cross-country differences and similarities in IOp in the light of differences in social mobility and persistence.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 395

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Job, Occupational, and Intergenerational Mobility; Promotion
• Subject: Equality of opportunity ; fairness ; redistribution ; wage inequality ; Bildungschancen ; Lohnstruktur ; Gerechtigkeit ; Vergleich ; Deutschland ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Niehues, Judith ; Peichl, Andreas
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/150940
• Last update: 10.03.2025, 11:46 AM CET