Measuring Inequality of Opportunity: Does Inequality Index Matter?

The equal opportunity theory is based on the idea that it is important to distinguish between two sources of inequality: the inequality caused by factors outside an individual's control (inequality of opportunity) and the inequality generated by factors within an individual’s control (inequalit...

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Main Authors: Zulfiya Ibragimova, Marina Frants
Format: Article
Language:English
Published: Czech Statistical Office 2021-03-01
Series:Statistika: Statistics and Economy Journal
Subjects:
Online Access:https://www.czso.cz/documents/10180/143570303/32019721q1_ibragimova_analyses.pdf/ae45bbfd-a734-4ce8-bbd6-bff26a7fe7bf?version=1.1
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author Zulfiya Ibragimova
Marina Frants
author_facet Zulfiya Ibragimova
Marina Frants
author_sort Zulfiya Ibragimova
collection DOAJ
description The equal opportunity theory is based on the idea that it is important to distinguish between two sources of inequality: the inequality caused by factors outside an individual's control (inequality of opportunity) and the inequality generated by factors within an individual’s control (inequality of effort). The aim of this study is to assess the impact of choosing an inequality index on the results of measuring the inequality of opportunity. The empirical analysis was carried out based on the data from Life in Transition III sociological survey. Important findings suggest that: 1) the choice of inequality measure has a significant impact on the outcome of measuring the inequality of opportunity; 2) within the methodology under consideration, when using the Gini index, the contribution of inequality of opportunity to the inequality in labor income turns out to be much greater than when using other measures of inequality with the direct method of assessment, and vice versa, noticeably less with the indirect method of assessment; 3) the L-Theil and T-Theil indices look more preferable to use; 4) a country's ranking in terms of absolute and relative inequality of opportunities changes depending on the choice of the measure of inequality and on the choice of the assessment method, sometimes quite significantly; 5) the ranking position for absolute inequality of opportunity may differ significantly from the ranking position for relative inequality.
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spelling doaj.art-225b30a47cec4883afd2c9edbb379a052022-12-21T20:15:56ZengCzech Statistical OfficeStatistika: Statistics and Economy Journal0322-788X1804-87652021-03-0110116690Measuring Inequality of Opportunity: Does Inequality Index Matter?Zulfiya Ibragimova0Marina Frants 1Bashkir State University, Ufa, RussiaUfa State Aviation Technical University, Ufa, RussiaThe equal opportunity theory is based on the idea that it is important to distinguish between two sources of inequality: the inequality caused by factors outside an individual's control (inequality of opportunity) and the inequality generated by factors within an individual’s control (inequality of effort). The aim of this study is to assess the impact of choosing an inequality index on the results of measuring the inequality of opportunity. The empirical analysis was carried out based on the data from Life in Transition III sociological survey. Important findings suggest that: 1) the choice of inequality measure has a significant impact on the outcome of measuring the inequality of opportunity; 2) within the methodology under consideration, when using the Gini index, the contribution of inequality of opportunity to the inequality in labor income turns out to be much greater than when using other measures of inequality with the direct method of assessment, and vice versa, noticeably less with the indirect method of assessment; 3) the L-Theil and T-Theil indices look more preferable to use; 4) a country's ranking in terms of absolute and relative inequality of opportunities changes depending on the choice of the measure of inequality and on the choice of the assessment method, sometimes quite significantly; 5) the ranking position for absolute inequality of opportunity may differ significantly from the ranking position for relative inequality.https://www.czso.cz/documents/10180/143570303/32019721q1_ibragimova_analyses.pdf/ae45bbfd-a734-4ce8-bbd6-bff26a7fe7bf?version=1.1inequalityinequality of opportunityinequality indices
spellingShingle Zulfiya Ibragimova
Marina Frants
Measuring Inequality of Opportunity: Does Inequality Index Matter?
Statistika: Statistics and Economy Journal
inequality
inequality of opportunity
inequality indices
title Measuring Inequality of Opportunity: Does Inequality Index Matter?
title_full Measuring Inequality of Opportunity: Does Inequality Index Matter?
title_fullStr Measuring Inequality of Opportunity: Does Inequality Index Matter?
title_full_unstemmed Measuring Inequality of Opportunity: Does Inequality Index Matter?
title_short Measuring Inequality of Opportunity: Does Inequality Index Matter?
title_sort measuring inequality of opportunity does inequality index matter
topic inequality
inequality of opportunity
inequality indices
url https://www.czso.cz/documents/10180/143570303/32019721q1_ibragimova_analyses.pdf/ae45bbfd-a734-4ce8-bbd6-bff26a7fe7bf?version=1.1
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