Partial and complete equality-of-opportunity orderings

Working Paper 2007-70

Abstract

This paper proposes a partial equality-of-opportunity ordering based on the inequality-of-opportunity curve, a mechanism that gives preference to those who are worse in terms of opportunity. Moreover, it provides a complete ordering that depends on a sensitivity parameter representing the degree of priority in the equality-of-opportunity policy. The Moreno-Ternero approach is obtained as a particular case. This proposal is applied to a set of 11 countries to compare their degree of equality of opportunity. Results show the relevance for economic policy of observing inequality of opportunity over tranches. Denmark dominates, in terms of posttax income, all other economies.

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