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(In)Equality and (In)Justice

Author

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  • Jasso, Guillermina

    (New York University)

Abstract

Understanding the exact connection between inequality and justice is important because justice is classically regarded as the first line of defense against self-interest and inequality. Absent a strong and clear link between inequality and justice, the sense of justice would not awaken to exert its moral suasion, no matter how great the inequality or how fast its increase. We obtain exact links between economic inequality and three parameters of the justice evaluation distribution–the mean, median, and variance–across a comprehensive set of inequality measures and a substantial starter set of just reward scenarios. This work shows that there is no general necessary connection between inequality and justice–inequality effects can be nonexistent, or can occur in opposite directions. There is, however, a striking pattern in some justice situations: As economic inequality increases, the average of the justice evaluations moves leftward, deeper into the territory of unjust underreward, and the distribution stretches outward, increasing the gulf between underrewarded and overrewarded and hollowing out the middle class. Further work specifying and strengthening the logical foundation will help guide development of sharp new empirical strategies for deeper understanding of the inequality-justice connection in all its manifestations.

Suggested Citation

  • Jasso, Guillermina, 2016. "(In)Equality and (In)Justice," IZA Discussion Papers 10125, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10125
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    References listed on IDEAS

    as
    1. Andreas Diekmann, 2004. "The Power of Reciprocity," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(4), pages 487-505, August.
    2. Guillermina Jasso & Samuel Kotz, 2008. "Two Types of Inequality," Sociological Methods & Research, , vol. 37(1), pages 31-74, August.
    3. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    justice evaluation; general inequality parameter; Theil MLD; Atkinson inequality; Gini coefficient; power-function distribution; Pareto distribution; inequality; justice; fairness; lognormal distribution; justice evaluation function; justice evaluation distribution;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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