A dissimilarity index of multidimensional inequality of opportunity (revised and updated)

Working paper

A recent literature on inequality of opportunity offers quantitative tools for comparisons and measurement based on stochastic dominance criteria and traditional inequality indices. In this paper I suggest an additional way of assessing inequality of opportunity with two indices of dissimilarity across distributions. The indices are based on a traditional homogeneity test of multinomial distributions and are similar to the square coe¢ cient of variation (Reardon and Firebaugh, 2002). Their properties are studied, as well as their usefulness and limitations in applications when both circumstances and advantages/outcomes are multidimensional. An empirical application measures changes in inequality of opportunity from an old to a young cohort in Peru. The importance of assessing the sensitivity of the results to group definitions and group proportions is highlighted.

Authors: Yalonetzky, G

• Publication status: Published
• Peer review status: Reviewed (other)
• Publisher: Oxford Poverty & Human Development Initiative (OPHI)
• Series: OPHI working paper
• Publication date: 2010-01-01
• Edition: Publisher's version
• ISSN: 2040-8188
• Paper number: 39
• ISBN: 9781907194238
• Language: English
• Keywords: ophi