The Gini and Mean Log Deviation Indices of Multivariate Inequality of Opportunity

Marek Kapera and Martyna Kobus ()
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Marek Kapera: Institute of Economics, Polish Academy of Sciences, Nowy Swiat 72, 00-330 Warsaw, Poland
Martyna Kobus: Institute of Economics, Polish Academy of Sciences, Nowy Swiat 72, 00-330 Warsaw, Poland

Econometrics, 2024, vol. 12, issue 2, 1-16

Abstract: The most common approach to measuring inequality of opportunity in income is to apply the Gini inequality index or the Mean Log Deviation (MLD) index to a smoothed distribution (i.e., a distribution of type mean incomes). We show how this approach can be naturally extended to include life outcomes other than income (e.g., health, education). We propose two measures: the Gini and MLD indices of multivariate inequality of opportunity. We show that they can be decomposed into the contribution of each outcome and the dependence of the outcomes. Using these measures, we calculate inequality of opportunity in health and income across European countries.

Keywords: equality of opportunity; multidimensional inequality; the Gini index (search for similar items in EconPapers)
JEL-codes: B23 C C00 C01 C1 C2 C3 C4 C5 C8 (search for similar items in EconPapers)
Date: 2024
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