Measuring long-term inequality of opportunity

Arbeitspapier

In this paper, we introduce and apply a general framework for evaluating long-term income distributions according to the Equality of Opportunity principle. Our framework allows for both an ex-ante and an ex-post approach to EOp. Our ex-post approach relies on a permanent income measure defined as the minimum annual expenditure an individual would need in order to be as well off as he could be by undertaking inter-period income transfers. There is long-term ex-post inequality of opportunity if individuals who exert the same effort have different permanent incomes. In comparison, the ex-ante approach focuses on the expected permanent income for individuals with identical circumstances. Hence, the ex-ante approach pays attention to inequalities in expected permanent income between different types of individuals. To demonstrate the empirical relevance of a long-run perspective on EOp, we exploit a unique panel data from Norway on individuals' incomes over their working lifespan.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4714

Classification and Topics

• Classification: Wirtschaft ; Social Choice; Clubs; Committees; Associations ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Measurement and Analysis of Poverty
• Subject: Equality of opportunity ; social welfare ; inequality ; permanent income ; intertemporal choice ; ex-ante ; ex-post ; Einkommensverteilung ; Gerechtigkeit ; Lebenseinkommen ; Messung ; Soziale Wohlfahrtsfunktion ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Aaberge, Rolf ; Mogstad, Magne ; Peragine, Vito
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/36289
• Last update: 10.03.2025, 11:45 AM CET