Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Despite a recent surge in the number of studies attempting to measure inequality of opportunity in various countries, methodological differences have so far prevented meaningful international comparisons. This paper presents a comparison of ex-ante measures of inequality of economic opportunity (IEO) across 41 countries, and of the Human Opportunity Index (HOI) for 39 countries. It also examines international correlations between these indices and output per capita, income inequality, and intergenerational mobility. The analysis finds evidence of a "Kuznets curve" for inequality of opportunity, and finds that the IEO index is positively correlated with overall income inequality, and negatively with measures of intergenerational mobility, both in incomes and in years of schooling. The HOI is highly correlated with the Human Development Index, and its internal measure of inequality of opportunity yields very different country rankings from the IEO measure.
Terms of use:
Documents in
D I S C U S S I O N P A P E R S E R I E SJEL Classification: D71, D91, I32Keywords: equality of opportunity, income inequality, social mobility, mobility
NON-TECHNICAL SUMMARYMany different indices to measure inequality of opportunity have been proposed, but only two have been applied to enough countries to permit reasonably meaningful international comparisons. The inequality of economic opportunity index (IEO) estimates the (lower bound) share of income inequality that can be attributed to differences in people's pre-determined circumstances (such as race, gender and family background). It has been applied to 41 countries, and ranges from 2% in Norway to 34% in Guatemala. The second approach is known as the Human Opportunity Index (HOI): an index of children's access to basic services, penalized by unequal opportunities in that access. Like the IEO, the HOI must lie between 0 and 100%. In the 39 countries where it has been computed, it ranges from 10% in Niger to 91% in Chile. The IEO is positively correlated with income inequality, and negatively with intergenerational mobility -both in incomes and in years of schooling. The HOI is highly correlated with the Human Development Index. Its internal measure of inequality of opportunity -the dissimilarity index -yields very different country rankings from the IEO, highlighting the differences between the two methods. The IEO and the HOI may well be complementary, but users should be cautious to understand what each...