INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE

We apply a variation of Bourguignon, Meléndez and Ferreira (2005) methodology to examine the extent to which income inequality is associated with the inequality of observed exogenous circumstances of origin that determine individuals' "opportunities " to pursue their chosen life plans...

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Autores principales:	Núñez,Javier, Tartakowsky,Andrea
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2007
Materias:	income inequality equality of opportunities
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862007000200004
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spelling	oai:scielo:S0718-528620070002000042008-01-28INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILENúñez,JavierTartakowsky,Andrea income inequality equality of opportunities We apply a variation of Bourguignon, Meléndez and Ferreira (2005) methodology to examine the extent to which income inequality is associated with the inequality of observed exogenous circumstances of origin that determine individuals' "opportunities " to pursue their chosen life plans. We find that equalizing a set of observed circumstances of origin across individuals such as parents' schooling, parents's stability of employment, father's age, household size and growing in a single vs a bi-parental household reduces income inequality, but in a small margin, in the range of 8 to 13 points of the Gini coefficient, about a 15-20 per cent drop. These results are similar to those obtained by Bourguignon et al. (2005) for Brazil, although the dataset and the set of observed circumstances are partially different. These results suggest that a significant part of income inequality may be associated with unobserved heterogeneity across individuals unrelated to circumstances of origin, such as preferences, effort and sheer luck, transitory shocks and measurement errors in income. However, assessing the relative importance of these factors vs. the role of unobserved circumstances remains as future researchinfo:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.34 n.2 20072007-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862007000200004en10.4067/S0718-52862007000200004
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	income inequality equality of opportunities
spellingShingle	income inequality equality of opportunities Núñez,Javier Tartakowsky,Andrea INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE
description	We apply a variation of Bourguignon, Meléndez and Ferreira (2005) methodology to examine the extent to which income inequality is associated with the inequality of observed exogenous circumstances of origin that determine individuals' "opportunities " to pursue their chosen life plans. We find that equalizing a set of observed circumstances of origin across individuals such as parents' schooling, parents's stability of employment, father's age, household size and growing in a single vs a bi-parental household reduces income inequality, but in a small margin, in the range of 8 to 13 points of the Gini coefficient, about a 15-20 per cent drop. These results are similar to those obtained by Bourguignon et al. (2005) for Brazil, although the dataset and the set of observed circumstances are partially different. These results suggest that a significant part of income inequality may be associated with unobserved heterogeneity across individuals unrelated to circumstances of origin, such as preferences, effort and sheer luck, transitory shocks and measurement errors in income. However, assessing the relative importance of these factors vs. the role of unobserved circumstances remains as future research
author	Núñez,Javier Tartakowsky,Andrea
author_facet	Núñez,Javier Tartakowsky,Andrea
author_sort	Núñez,Javier
title	INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE
title_short	INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE
title_full	INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE
title_fullStr	INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE
title_full_unstemmed	INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE
title_sort	inequality of outcomes vs. inequality of opportunities in a developing country: an exploratory analysis for chile
publisher	Universidad de Chile. Departamento de Economía
publishDate	2007
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862007000200004
work_keys_str_mv	AT nunezjavier inequalityofoutcomesvsinequalityofopportunitiesinadevelopingcountryanexploratoryanalysisforchile AT tartakowskyandrea inequalityofoutcomesvsinequalityofopportunitiesinadevelopingcountryanexploratoryanalysisforchile
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INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE

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