The Evolution of Inequality of Opportunity in Germany: A Machine Learning Approach

Paolo Brunori, and Guido Neidhoefer
Authors registered in the RePEc Author Service: Guido Neidhöfer

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: We show that measures of inequality of opportunity fully consistent with Roemer (1998)'s inequality of opportunity theory can be straightforwardly estimated adopting a machine learning approach. Following Roemer, inequality of opportunity is generally defined as inequality between individuals exerting the same degree of effort but characterized by different exogenous circumstances. Due to difficulties of measuring effort, most empirical contributions so far identified groups of individuals sharing same circumstances, and then measured inequality of opportunity as between-group inequality, without considering the effort exerted. Our approach uses regression trees to identify groups of individuals characterized by identical circumstances, and a polynomial approximation to estimate the degree of effort exerted. To apply our method, we take advantage of information contained in 25 waves of the German Socio-Economic Panel. We show that in Germany inequality of opportunity declined immediately after the reunification, surged in the first decade of the century, and slightly declined again after 2010. The level of estimated unequal opportunity is today just above the level recorded in 1992.

Keywords: Inequality; Opportunity; SOEP; Germany (search for similar items in EconPapers)
JEL-codes: D30 D31 D63 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2020
New Economics Papers: this item is included in nep-big and nep-ore
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp02_2020.pdf (application/pdf)

Related works:
Journal Article: The Evolution of Inequality of Opportunity in Germany: A Machine Learning Approach (2021)
Working Paper: The Evolution of Inequality of Opportunity in Germany: A Machine Learning Approach (2020)
Working Paper: The Evolution of Inequality of Opportunity in Germany: A Machine Learning Approach (2020)
Working Paper: The Evolution of Inequality of Opportunity in Germany: A Machine Learning Approach (2020)
Working Paper: The evolution of inequality of opportunity in Germany: A machine learning approach (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:frz:wpaper:wp2020_02.rdf

Access Statistics for this paper

More papers in Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa Via delle Pandette 9 50127 - Firenze - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Giorgio Ricchiuti ().