Measuring inequality of opportunity with imperfect data: the case of Turkey |
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Authors: | Francisco H G Ferreira J��r��mie Gignoux Meltem Aran |
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Institution: | (1) Indira Gandhi Institute of Development Research, Gen. A.K. Vaidya Marg, Goregaon(E), Mumbai, 400065, India |
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Abstract: | The measurement of inequality of opportunity has hitherto not been attempted in a number of countries because of data limitations.
This paper proposes two alternative approaches to circumventing the missing data problems in countries where a demographic
and health survey (DHS) and an ancillary household expenditure survey are available. One method relies only on the DHS, and
constructs a wealth index as a measure of economic advantage. The alternative method imputes consumption from the ancillary
survey into the DHS. In both cases, we compute a lower bound estimator of the share of (ex-ante) inequality of opportunity
in total inequality. Parametric and non-parametric estimates are calculated for each method, and the parametric approach is
shown to yield preferable lower-bound measures. In an application to the sample of ever-married women aged 30–49 in Turkey,
inequality of opportunity accounts for at least 26% (31%) of overall inequality in imputed consumption (the wealth index). |
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