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.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 5834
- 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
- Event
-
Geistige Schöpfung
- (who)
-
Niehues, Judith
Peichl, Andreas
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2011
- Handle
- URN
-
urn:nbn:de:101:1-201107133470
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Niehues, Judith
- Peichl, Andreas
- Institute for the Study of Labor (IZA)
Time of origin
- 2011
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