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Economic Growth and Equality of Opportunity

Authors: Peragine V.; Palmisano F.; Brunori P.;

Economic Growth and Equality of Opportunity

Abstract

In this paper we argue that a better understanding of the relationship between inequality and growth can be obtained by shifting the analysis 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 employing 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 opportunity redistribution. Finally, we provide two empirical illustrations, for Italy and for Brasil, which show the potentials of the tools we have introduced.

Countries
Italy, Italy, Italy, United States, Italy
Keywords

INCOME INEQUALITY, INEQUALITY OF OPPORTUNITY, ECONOMIC GROWTH, 330, growth episode, Achieving Shared Growth,Inequality,Economic Growth,Economic Theory&Research,Poverty Impact Evaluation, Gini index, income inequality; inequality of opportunity; economic growth., Growth, inequality of opportunity, Economic Growth, growth process, cumulative distribution, poverty reduction, Economic growth, equality of opportunity, Italy, Brazil, distributional impact, developing countries, income growth, economic development, per capita income, standard tool, income poverty, distributional effect, growth rate, labor market, economic activity, development economics, public policies, income inequality, jel: jel:D63, jel: jel:E24, jel: jel:O40, jel: jel:O15

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    24
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
24
Top 10%
Top 10%
Average
Green
bronze