Inequality of Outcomes and Inequality of Opportunities in Brazil

This paper departs from John Roemer's theory of equality of opportunities. We seek to determine what part of observed outcome inequality may be attributed to differences in observed 'circumstances', including family background, and what part is due to 'personal efforts'. We use a micro-econometric technique to simulate what the distribution of outcomes would look like if 'circumstances' were the same for everybody. This technique is applied to Brazilian data from the 1996 household survey, both for earnings and for household incomes. It is shown that observed circumstances are a major source of outcome inequality in Brazil, probably more so than in other countries for which information is available. Nevertheless, the level of inequality after observed circumstances are equalized remains very high in Brazil.http://deepblue.lib.umich.edu/bitstream/2027.42/40016/3/wp630.pd

Markets, Human Capital, and Inequality: Evidence from Rural China

Market reforms are generally credited with the rapid growth enjoyed by China's rural sector. This growth has not been without some cost, however, as inequality has also increased. Estimates suggest that the Gini rose from less than 0.20 to over 0.40 during this period. In this paper we go behind these numbers to explore the nature and causes of this inequality. To begin, we find that a considerable share of rural inequality is driven by local differences in household incomes, as opposed to regional income differences, that have been the focus of the previous literature. We then examine inter-household income differentials at the village level, exploring the links between education, market development, non-agricultural employment, and household income. To address these questions, we draw on a recently collected data set from Northeast China, that was collected by two of the authors in collaboration with Chinese colleagues in Hebei and Liaoning provinces in 1995. For purposes of comparison, we also draw on the Chinese Health and Nutrition Survey. We find that indeed, increasing rates of return to education and unevenly developed non-agricultural business opportunities contribute to the high levels of inequality in the countryside. Of most interest, however, is the implication that simultaneous improvements in educational attainment and off-farm market-development would allow more households to share in the rapid growth in rural China.http://deepblue.lib.umich.edu/bitstream/2027.42/39682/3/wp298.pd

Inequality of outcomes and inequality of opportunities in Brazil

This paper departs from John Roemer's formulation of the theory of equality of opportunities. It seeks to determine what part of observed outcome inequality may be attributed to differences in observed 'circumstances', including family background, and what part is due to 'personal efforts'. We use a micro-econometric technique to simulate what the distribution of outcomes would look like if 'circumstances' were the same for everybody. This technique is applied to Brazilian data from the 1996 household survey, both on the distribution of earnings for active individuals and on the distribution of household income per capita. It is shown that observed circumstances are a major source of outcome inequality in Brazil, probably more so than in other countries for which information is available. Yet, the level of inequality after equalizing circumstances remains very high. While a policy aimed at equalizing opportunities - through facilitating more equal access to schooling, for instance - might therefore be successful in lowering Brazilian inequality somewhat, more ambitious targets for inequality reduction may require more direct income redistribution.Inequality of Opportunities, Intergenerational Educational Mobility JEL Codes: D31, D63, J62

Inequality of Outcomes and Inequality of Opportunities in Brazil

This paper departs from John Roemer's theory of equality of opportunities. We seek to determine what part of observed outcome inequality may be attributed to differences in observed 'circumstances', including family background, and what part is due to 'personal efforts'. We use a micro-econometric technique to simulate what the distribution of outcomes would look like if 'circumstances' were the same for everybody. This technique is applied to Brazilian data from the 1996 household survey, both for earnings and for household incomes. It is shown that observed circumstances are a major source of outcome inequality in Brazil, probably more so than in other countries for which information is available. Nevertheless, the level of inequality after observed circumstances are equalized remains very high in Brazil.Inequality of Opportunities, Intergenerational Educational Mobility

Inequality of outcomes and inequality of opportunities in Brazil

The authors depart from John Roemer's theory of equality of opportunities. They seek to determine what part of observed outcome inequality may be attributed to differences in observed"circumstances,"including family background, and what part is due to"personal efforts."The authors use a microeconometric technique to simulate what the distribution of outcomes would look like if circumstances were the same for everybody. They apply this technique to Brazilian data from the 1996 household survey, both for earnings and for household incomes. The authors show that observed circumstances are a major source of outcome inequality in Brazil, probably more so than in other countries for which information is available. Nevertheless, the level of inequality after observed circumstances are equalized remains very high in Brazil.Economic Theory&Research,Public Health Promotion,Curriculum&Instruction,Teaching and Learning,Health Monitoring&Evaluation,Health Monitoring&Evaluation,Teaching and Learning,Economic Theory&Research,Inequality,Poverty Impact Evaluation

Expenditure incidence in Africa: microeconomic evidence

In this paper, we examine the progressivity of social sector expenditures in eight sub-Saharan African countries. We employ dominance tests, complemented by extended Gini/concentration coefficients, to determine whether health and education expenditures redistribute resources to the poor. We find that social services are poorly targeted. Among the services examined, primary education tends to be most progressive and university education is least progressive. The benefits associated with hospital care are also less progressive than other health facilities. Our results also show that, while concentration curves are a useful way to summarise information on the distributional benefits of government expenditures, statistical testing of differences in curves is important.

Markets, Human Capital, and Inequality: Evidence from Rural China

Market reforms are generally credited with the rapid growth enjoyed by China's rural sector. This growth has not been without some cost, however, as inequality has also increased. Estimates suggest that the Gini rose from less than 0.20 to over 0.40 during this period. In this paper we go behind these numbers to explore the nature and causes of this inequality. To begin, we find that a considerable share of rural inequality is driven by local differences in household incomes, as opposed to regional income differences, that have been the focus of the previous literature. We then examine inter-household income differentials at the village level, exploring the links between education, market development, non- agricultural employment, and household income. To address these questions, we draw on a recently collected data set from Northeast China, that was collected by two of the authors in collaboration with Chinese colleagues in Hebei and Liaoning provinces in 1995. For purposes of comparison, we also draw on the Chinese Health and Nutrition Survey. We find that indeed, increasing rates of return to education and unevenly developed non-agricultural business opportunities contribute to the high levels of inequality in the countryside. Of most interest, however, is the implication that simultaneous improvements in educational attainment and off-farm market-development would allow more households to share in the rapid growth in rural China.

Equity Basis Selection in Allocation Environments

The successful formation and long-term stability of a cooperative venture is often linked to the perceived fairness of the associated cost or resource allocation. In particular, the effectiveness of such collaborations can be hampered by the lack of a consensus view on what basis should be used for gauging an allocation’s “fairness.” Standards of equity in traditional cost-sharing applications could be assessed on many dimensions: per capita, per unit of demand, or per unit of revenue, to mention a few. This multiplicity of logically compelling “equity bases” is a feature common to many practical cost-sharing applications. Our analysis shows that features of the allocation environment are capable of explaining a substantial amount of the variation in the equity bases employed in practice and are consistent with the axiomatic principles of collective behavior.cooperative games; cost allocation; equity; probit model

Measuring Regional Cohesion Effects of Large-scale Transport Infrastructure Investments: An Accessibility Approach.

Cohesion is considered one of the main policy goals both at a EU an national level. However, there is currently a lack of a common approach to measure cohesion effects of large-scale transport infrastructure investments. Accessibility indicators have an unexploited potential in transportation assessment methodologies. Accessibility is considered an added value of locations, which represents one of the elements contributing to a region’s welfare. Therefore, spatial distribution of accessibility may be used as a proxy to assess regional cohesion. This paper suggests an approach consisting in measuring changes in the spatial distribution of four different accessibility indicators, computed and mapped using a GIS support. Cohesion is subsequently measured calculating a set of inequality indices of the resulting accessibility distribution. It is possible then to assess whether disparities in regional accessibility are increased or reduced after the implementation of a new transport infrastructure. This approach is tested assessing regional cohesion effects of road and rail network developments in Spain in the period 1992-2004. Comparing the results obtained with accessibility indicators and inequality indices allows identifying the main critical factors and sources of bias. The conclusion is that for the rode mode, cohesion has improved, while regional disparities have increased for the rail mode