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Opportunity advantage between income distributions

Author

Listed:
  • Carmen Herrero

    (University of Alicante and Ivie)

  • Antonio Villar

    (Pablo de Olavide University)

Abstract

This paper seeks to compare income distributions from the opportunity advantage viewpoint. That is a measure of how likely it is for a representative individual of one society to receive a higher income than a representative individual of another. Opportunity advantage tries to measure the income opportunities a society offers to an individual, relative to other societies, evaluated from the “veil of ignorance” viewpoint. We show that this notion can be precisely formalised and results in a complete and cardinal income distribution evaluation. We also present an empirical illustration of the gender differences in wage distributions in Spain after the financial crisis. The results show that this criterion offers new insights into the evaluation of differences in opportunity.

Suggested Citation

  • Carmen Herrero & Antonio Villar, 2021. "Opportunity advantage between income distributions," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 785-799, December.
    • Handle: RePEc:spr:joecin:v:19:y:2021:i:4:d:10.1007_s10888-021-09488-5
    DOI: 10.1007/s10888-021-09488-5
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    References listed on IDEAS

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    3. Xavier Ramos & Dirk Van de gaer, 2021. "Is Inequality of Opportunity Robust to the Measurement Approach?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 18-36, March.
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    5. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
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    8. Satya R. Chakravarty, 2009. "Inequality, Polarization and Poverty," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-79253-8, July.
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    10. Rafael Salas & John A. Bishop & Lester A. Zeager, 2018. "Second‐Order Discrimination and Generalized Lorenz Dominance," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(3), pages 563-575, September.
    11. Carmen Herrero & Antonio Villar, 2018. "The Balanced Worth: A Procedure to Evaluate Performance in Terms of Ordered Attributes," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(3), pages 1279-1300, December.
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    Cited by:

    1. Cristina Pita & Ramón J. Torregrosa, 2023. "The Education-Job Satisfaction Paradox in the Public Sector," Public Organization Review, Springer, vol. 23(4), pages 1717-1735, December.

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    More about this item

    Keywords

    Domination probabilities; Income distribution; Opportunity advantage; Ranking distributions; Veil of ignorance;
    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
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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