Economic growth and equality of opportunity

Vito Peragine, Flaviana Palmisano and Paolo Brunori

No 37, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: In this paper we argue that a better understanding of the relationship between inequality and growth can be obtained by shifting the analisys from the space of final achievements to the space of opportunities. To this end, we introduce the Opportunity Growth Incidence Curve, that can be used to evaluate the income dynamics of specific groups of the population and to infer the role of growth in the evolution of inequality of opportunity over time. By employng a rank dependent social welfare function we provide a rigorous normative justification for the use of the OGIC: we obtain suitable dominance conditions and we show how they can be interpreted in terms of OGIC dominance. We also propose an index that can be used to measure the impact of growth in terms of ooopotunity redistribution. Finally, we provide two empirical illustrations, for Italy and for Brasil, which show the potentials of the tools we have introduced.

Keywords: INCOME INEQUALITY; INEQUALITY OF OPPORTUNITY; ECONOMIC GROWTH (search for similar items in EconPapers)
JEL-codes: D63 E24 O15 O40 (search for similar items in EconPapers)
Pages: 1120
Date: 2011-10, Revised 2011-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Economic Growth and Equality of Opportunity (2014)
Working Paper: Economic growth and equality of opportunity (2011)
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