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Fairness and Gini decomposition

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  • Moramarco, Domenico

Abstract

We propose a new decomposition of the Gini coefficient that nests a structuralist and an individualistic definition of unfair inequality, as well as ex ante and ex post measures of inequality of opportunity. We illustrate the decomposition on Belgian data, highlighting the source of a consistent difference between these views about unfair inequality.

Suggested Citation

  • Moramarco, Domenico, 2023. "Fairness and Gini decomposition," Economics Letters, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:ecolet:v:233:y:2023:i:c:s0165176523004354
    DOI: 10.1016/j.econlet.2023.111409
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    References listed on IDEAS

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    1. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 429-450, December.
    2. Marc Fleurbaey & Vito Peragine, 2013. "Ex Ante Versus Ex Post Equality of Opportunity," Economica, London School of Economics and Political Science, vol. 80(317), pages 118-130, January.
    3. Ferreira, Francisco H. G. & Peragine, Vito, 2015. "Equality of Opportunity: Theory and Evidence," IZA Discussion Papers 8994, Institute of Labor Economics (IZA).
    4. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2022. "Inheritances and wealth inequality: a machine learning approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 27-51, March.
    5. Xavier Ramos & Dirk gaer, 2016. "Approaches To Inequality Of Opportunity: Principles, Measures And Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 30(5), pages 855-883, December.
    6. Lefranc, Arnaud & Pistolesi, Nicolas & Trannoy, Alain, 2009. "Equality of opportunity and luck: Definitions and testable conditions, with an application to income in France," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1189-1207, December.
    7. Brunori, Paolo & Hufe, Paul & Mahler, Daniel, 2023. "The roots of inequality: estimating inequality of opportunity from regression trees and forests," LSE Research Online Documents on Economics 118220, London School of Economics and Political Science, LSE Library.
    8. Sarkar, Sandip, 2023. "Gini decomposition: An inequality of opportunity perspective," Economics Letters, Elsevier, vol. 223(C).
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    Cited by:

    1. Carlos Gradín & Gabriela Zapata-Román, 2024. "Unpacking inequality of opportunity in Chile: the role of birth circumstances using a Shapley decomposition," Working Papers 676, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    Keywords

    Equal opportunity; Gini decomposition; Individualism; Structuralism;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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