Arbeitspapier
Lower Bounds and the Linearity Assumption in Parametric Estimations of Inequality of Opportunity
The consistent underestimation of inequality of opportunity has led some scholars to call into question the usefulness of such estimates. In this paper we argue that neglecting heterogeneity in the influence of circumstances across types as well as neglecting heterogeneity in type-specific effort distributions are two important sources of the downward bias in inequality of opportunity measures. Compared to the standard parametric approach of ex ante measurement of inequality of opportunity, we calculate a 50% upwards correction when accounting for both sources of heterogeneity. Therefore, taking heterogeneity across types seriously is an important step towards strengthening the policy relevance of this concept.
- Language
-
Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 9605
- Classification
-
Wirtschaft
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- Subject
-
equality of opportunity
type heterogeneity
parametric estimation
- Event
-
Geistige Schöpfung
- (who)
-
Hufe, Paul
Peichl, Andreas
- Event
-
Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2015
- Handle
- 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
- Hufe, Paul
- Peichl, Andreas
- Institute for the Study of Labor (IZA)
Time of origin
- 2015
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