Abstract
This chapter is devoted to discussing the relationship that exists between welfare and public policy through the measurement of inequality. Our narrative outlines how setting the right policy to increase welfare must necessarily come through a multidimensional assessment of inequality. In recent years, a thoughtful frontier of inequality measurement has proposed an analysis of inequality of opportunity to understand and study the differences that exist between and within countries. We aim at discussing how the study of inequality measurement is essential for understanding the channels that contribute to making the income distribution much more unfair over time. For this, we argue on the main methodologies proposed in the literature − discussed in a straightforward manner – both from a theoretical and empirical view. In particular, the empirical illustration through EU-SILC data can help to understand how important such a pathway can be to capture as much as possible the effects on welfare.
Similar content being viewed by others
References
Aaberge R, Mogstad M, Peragine V (2011) Measuring long-term inequality of opportunity. J Public Econ 95(3):193–204
Arneson R (1989) Equality and equal opportunity for welfare. Philos Stud 56(1):77–93
Arneson RJ (1999) Equality of opportunity for welfare defended and recanted. J Polit Philos 7(4):488–497
Arrow K (1951) Social choice and individual values, 2nd edn. John Wiley, New York. 1963
Atkinson AB (1970) On the measurement of inequality. J Econ Theory 2(3):244–263
Blackorby C, Donaldson D, Auersperg M (1981) A new procedure for the measurement of inequality within and among population subgroups. Can J Econ 14(4):665–685
Bourguignon F (1979) Decomposable income inequality measures. Econometrica 47(4):901–920
Brennan G, Buchanan J (1985) The reason of rules: constitutional political economy. Cambridge University Press, Cambridge
Checchi D, Peragine V (2010) Inequality of opportunity in Italy. J Econ Inequal 8(4):420–450
Coco G, Pignataro G (2013) Unfair credit allocations. Small Bus Econ 41:241–251
Coco G, Pignataro G (2014) The poor are twice cursed: wealth inequality and inefficient credit market. J Bank Financ 49:149–159
Cohen GA (1989) On the currency of egalitarian justice. Ethics 99(4):906–944
Cowell FA (1980) On the structure of additive inequality measures. Rev Econ Stud 47(3):521–531
Dworkin R (1981a) What is equality? Part 1: equality of welfare. Philos Public Aff 10(3):185–246
Dworkin R (1981b) What is equality? Part 2: equality of resources. Philos Public Aff 10(4):283–345
Foster JE, Shneyerov AA (2000) Path independent inequality measures. J Econ Theory 91(2):199–222
Glaeser EL (2005) Inequality. NBER working paper
Haaparanta P, Kanbur R, Paukkeri T (2022) Promoting education under distortionary taxation: equality of opportunity versus welfarism. J Econ Inequal 20(1):281–297
Hédoin C (2022) Welfare theory, public action, and ethical values: revisiting the history of welfare economics. Econ Philos 38(2):326–332
Lasso de la Vega C, Urrutia AM (2005) Path independent multiplicatively decomposable inequality measures. Investig Econ 29(2):379–387
Li Donni P, Peragine V, Pignataro G (2014) Ex-ante and ex-post measurement of equality of opportunity in health: a normative decomposition. Health Econ 23(2):182–198
Martin P, Ottaviano G (1999) Growing locations: industry location in a model of endogenous growth. Eur Econ Rev 43(2):281–302
McFate K, Lawson R, Wilson WJ (1995) Poverty, inequality, and the future of social policy: Western States in the New World order, Russell Sage Foundation
Moreno-Ternero JD, Roemer JE (2006) Impartiality, priority, and solidarity in the theory of justice. Econometrica 74(5):1419–1427
Peragine V (2004) Measuring and implementing equality of opportunity for income. Soc Choice Welf 22(1):187–210
Pignataro G (2009) Decomposing equality of opportunity by income sources. Econ Bull 29(2):702–711
Pignataro G (2010) Measuring equality of opportunity by shapley value. Econ Bull 30(1):786–798
Pignataro G (2012) Equality of opportunity: policy and measurement paradigms. J Econ Surv 26(5):800–834
Pignataro G (2021) Spatial inequality: a multidimensional perspective. In: Colombo S (ed) Spatial Economics, Applications, vol II. Palgrave Macmillan, London
Rawls J (1971) A theory of justice. Harvard University Press, Cambridge, p 1971
Roemer JE (1993) A pragmatic theory of responsibility for the egalitarian planner. Philos Public Aff 22(2):146–166
Roemer JE (1998) Equality of opportunity. Harvard University Press, Cambridge/London
Roemer JE (2001) Three egalitarian views and American law. Law Philos 20(4):433–460
Roemer JE (2002) Egalitarianism against the veil of ignorance. J Philos 99(4):167–184
Roemer J (2004a) Equal opportunity and intergenerational mobility: going beyond intergenerational income transition matrices. In: Corak M (ed) Generational income mobility in North America and Europe. Cambridge University Press, Cambridge
Roemer JE (2004b) Eclectic distributional ethics. Politics, Philos Econ 3(3):267–281
Sen A (1973) On economic inequality. W.W. Norton, New York
Sen A (1977) On weights and measures: informational constraints in social welfare analysis. Econometrica 45:1539–1572
Shorrocks AF (1984) Inequality decomposition by population subgroups. Econometrica 52(6):1369–1385
Sørensen A (2006) Welfare states, family inequality, and equality of opportunity. Res Soc Stratification Mobility 24(4):367–375
West A, Nikolai R (2013) Welfare regimes and education regimes: equality of opportunity and expenditure in the EU (and US). J Soc Policy 42(3):469–493
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 Springer Nature Switzerland AG
About this entry
Cite this entry
Bonacini, L., Pignataro, G. (2023). Equality of Opportunity: Welfare and Public Policies. In: Sardoč, M. (eds) Handbook of Equality of Opportunity. Springer, Cham. https://doi.org/10.1007/978-3-319-52269-2_70-1
Download citation
DOI: https://doi.org/10.1007/978-3-319-52269-2_70-1
Received:
Accepted:
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-52269-2
Online ISBN: 978-3-319-52269-2
eBook Packages: Springer Reference EducationReference Module Humanities and Social SciencesReference Module Education