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Robust Inequality of Opportunity Comparisons: Theory and Application to Early Childhood Policy Evaluation

Francesco Andreoli (), Tarjei Havnes and Arnaud Lefranc
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Arnaud Lefranc: University of Cergy-Pontoise, CNRS, THEMA, and IZA

The Review of Economics and Statistics, 2019, vol. 101, issue 2, 355-369

Abstract: This paper develops a criterion to assess equalization of opportunity that is consistent with theoretical views of equality of opportunity. We characterize inequality of opportunity as a situation where some groups in society enjoy an illegitimate advantage. In this context, equalization of opportunity requires that the extent of the illegitimate advantage enjoyed by the privileged groups falls. Robustness requires that this judgment be supported by the broadest class of individual preferences. We formalize this criterion in a decision-theoretic framework and derive an empirical condition for equalization of opportunity based on observed opportunity distributions. The criterion is used to assess the effectiveness of child care at equalizing opportunity among children, using quantile treatment effects estimates of a major child care reform in Norway. Overall, we find strong evidence supporting equalization of opportunity.

Date: 2019
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The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

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