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Ranking Income Distributions According to Equality of Opportunity
Authors:Vito Peragine
Institution:(1) Dipartimento di Scienze Economiche, Facoltà di Economia, Università di Bari, Via C. Rosalba 53, 70124 Bari, Italy
Abstract:According to the opportunity egalitarian ethics, economic inequalities due to factors beyond the individual responsibility are inequitable and to be compensated by society, whereas inequalities due to personal responsibility are equitable and not to be compensated. In this paper we derive welfare and inequality criteria that respect this principle of justice. We characterize axiomatically classes of opportunity egalitarian social evaluation functions. Then, by requiring unanimous agreement among such classes, we provide simple distributional conditions to rank income distributions. These criteria extend the Lorenz and generalized Lorenz partial orderings, commonly used in the unidimensional case of income distributions, to the current context of equality of opportunity.
Keywords:economic inequality  equality of opportunity  income distributions  Lorenz dominance  social welfare
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