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Addressing Inequality of Opportunity: Some Lessons from the OECD and Latin America

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  • Ulrich Lachler

Abstract

Most OECD countries have seen income inequality increase over the past 25 years. The possibility that this may have been accompanied by rising inequality of opportunity triggers concerns about social justice and economic performance. This paper presents indirect evidence suggesting that the same factors causing overall income inequality to increase also are likely to have increased inequality of opportunity. Drawing on the experience of countries in the OECD and in Latin America, the paper concludes that greater fiscal progressivity and broad-based investments in education can be effective in reducing the inequality of opportunity without adverse effects on economic growth.

Suggested Citation

  • Ulrich Lachler, 2016. "Addressing Inequality of Opportunity: Some Lessons from the OECD and Latin America," Journal of Income Distribution, Ad libros publications inc., vol. 24(3-4), pages 81-100, July-Dece.
    • Handle: RePEc:jid:journl:y:2016:v:24:i:1:p:81-100
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    File URL: https://jid.journals.yorku.ca/index.php/jid/article/view/37270
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    More about this item

    Keywords

    income inequality; inequality of opportunity; human capital; economic growth;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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