Equity and Equality

Duclos, Jean-Yves

Equity and Equality

No 2284, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Is horizontal equity (HE) the "most widely accepted principle of equity"? Or does it stand in "opposition to the advancement of human welfare"? This paper argues that the case for the HE principle is not as straightforward as is usually thought and that it requires advanced notions of justice and wellbeing. The most likely ethical basis for HE appears to combine a Rawlsian maximin principle and a view of well-being that allows for relative local comparison effects. The paper also explores some of the dimensions of equality and well-being along which the HE principle can be applied and presents a number of examples showing how HE considerations can provide an important input into policy analysis.

Keywords: equality; horizontal equity; vertical equity; redistribution; social justice (search for similar items in EconPapers)
JEL-codes: D31 D60 D63 I30 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2006-09
New Economics Papers: this item is included in nep-hpe and nep-ltv
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Citations: View citations in EconPapers (5)

Published - published in: Canadian Journal of Economics / Revue canadienne d'économique, 2006, 39 (4), 1073-1104

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Working Paper: Equity and Equality (2006)
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