The measurement of opportunity inequality: A cardinality-based approach

Efe A. Ok, Laurence Kranich

    Research output: Contribution to journalArticlepeer-review

    Abstract

    We consider the problem of ranking distributions of opportunity sets on the basis of equality. First, conditional on a given ranking of individual opportunity sets, we define the notion of an equalizing transformation. Then, assuming that the opportunity sets are ranked according to the cardinality ordering, we formulate the analogues of the notions of the Lorenz partial ordering, equalizing (Dalton) transfers, and inequality averse social welfare functions - concepts which play a central role in the literature on income inequality. Our main result is a cardinality-based analogue of the fundamental theorem of inequality measurement: one distribution Lorenz dominates another if and only if the former can be obtained from the latter by a finite sequence of rank preserving equalizations, and if and only if the former is ranked higher than the latter by all inequality averse social welfare functions. In addition, we characterize the smallest monotonic and transitive extension of our cardinality-based Lorenz inequality ordering.

    Original languageEnglish (US)
    Pages (from-to)263-287
    Number of pages25
    JournalSocial Choice and Welfare
    Volume15
    Issue number2
    DOIs
    StatePublished - 1998

    ASJC Scopus subject areas

    • Social Sciences (miscellaneous)
    • Economics and Econometrics

    Fingerprint Dive into the research topics of 'The measurement of opportunity inequality: A cardinality-based approach'. Together they form a unique fingerprint.

    Cite this