Arbeitspapier

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

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.

Sprache
Englisch

Erschienen in
Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 395

Klassifikation
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
Thema
Equality of opportunity
fairness
redistribution
wage inequality
Bildungschancen
Lohnstruktur
Gerechtigkeit
Vergleich
Deutschland
USA

Ereignis
Geistige Schöpfung
(wer)
Niehues, Judith
Peichl, Andreas
Ereignis
Veröffentlichung
(wer)
Deutsches Institut für Wirtschaftsforschung (DIW)
(wo)
Berlin
(wann)
2011

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Niehues, Judith
  • Peichl, Andreas
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Entstanden

  • 2011

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