The network of injustice: a novel approach to inequality of opportunity

Francesco Colcerasa, Lorenzo Giammei and Francesca Subioli

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Restoring the theoretical foundation of John Roemer’s conceptualization of inequality of opportunity (IOp), we introduce an innovative empirical approach to measure unfair inequalities through Bayesian networks. This methodology enhances our understanding of income inequality through structural learning algorithms, generating an IOp index and, most importantly, shedding light on the underlying income formation process. We demonstrate how this proposal relates to established measurement methods through simulated data, and provide an application to five European countries to illustrate the potential of Bayesian networks in the context of measuring inequality of opportunity.

Keywords: inequality of opportunity; EU-SILC; Bayesian networks (search for similar items in EconPapers)
JEL-codes: A13 C43 D63 I20 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2025-02-05
New Economics Papers: this item is included in nep-eur and nep-net
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:127182

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