Inequality of Opportunity in Indian Women
TL;DR: In this article, the authors estimate the IOP in economic outcomes among Indian women by using the nationally representative India Human Development Survey 2011-2012, and find that the parental education is the most significant contributor to IOP.
Abstract: Inequality of opportunity (IOp) in any society is defined as that part of overall inequality which arises from factors beyond the control of an individual (circumstances) such as parental education, caste, gender, religion etc. and is thus considered unfair and is against the meritocratic values of a society. Hence, it needs to be controlled and compensated. We estimate the IOp in economic outcomes among Indian women by using the nationally representative India Human Development Survey 2011–2012. We include parental education, caste, religion and region of birth as circumstances. The overall IOp in income ranges from 18–25% and 16–21% (of total income inequality) in urban and rural areas, respectively. The corresponding figures for consumption expenditure are 16–22% and 20–23% in urban and rural areas, respectively. We also estimate the partial contributions of the circumstances to the overall IOp. We find that the parental education is the most significant contributor to IOp in urban areas, whereas, region of birth is the most significant contributor to IOp in rural areas. Fortunately, findings imply that socially and culturally imbedded factors like caste and religion which are more persistent do contribute to the IOp, but, the largest contribution is due to factors like parental education and region which can be relatively easily tackled and addressed with policy interventions.
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TL;DR: In this article, the authors identify the caste group-based differences in socioeconomic factors that contribute to the digital divide between these groups using a non-linear decomposition method and show that there exists a large first-level and second-level digital divide among the disadvantaged caste groups and others.
Abstract: With the increasing importance of information and communication technologies in access to basic services like education and health, the question of the digital divide based on caste assumes importance in India where large socioeconomic disparities persist between different caste groups. Studies on caste-based digital inequality are still scanty in India. Using nationally representative survey data, this paper analyzes the first-level digital divide (ownership of computer and access to the internet) and the second-level digital divide (individual's skill to use computer and the internet) between the disadvantaged caste group and the others. Further, this paper identifies the caste group-based differences in socioeconomic factors that contribute to the digital divide between these groups using a non-linear decomposition method. The results show that there exists a large first-level and second-level digital divide between the disadvantaged caste groups and others in India. The non-linear decomposition results indicate that the caste-based digital divide in India is rooted in historical socioeconomic deprivation of disadvantaged caste groups. More than half of the caste-based digital gap is attributable to differences in educational attainment and income between the disadvantaged caste groups and others. The findings of this study highlight the urgent need for addressing educational and income inequality between the different caste groups in India in order to bridge the digital divide.
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28 Mar 2023
TL;DR: In this article , a measure of deprivation which counts for differences in economic outcomes, as well as estimate its effects, is analyzed and found that IOp is positively associated with statements on beliefs about the unfair distribution of outcomes in the sense of a successful life and towards the most important factors of finding a job at present.
Abstract: Abstract An egalitarian society is one that incentivises individuals to use their resources in order to be improve their economic outcomes and achieve social integration. The objective of this paper is to analyse Inequality of Opportunity (IOp), a measure of deprivation which counts for differences in economic outcomes, as well as estimate its effects. The research findings show that IOp is positively associated with statements on beliefs about the unfair distribution of outcomes in the sense of a successful life and towards the most important factors of finding a job at present. On the other hand, higher levels institutional trust reverse the effect of IOp. There are additional positive impacts in terms of such beliefs for those whose access to primary goods is limited due to disfavourable initial conditions at birth (being born in a rural area and being a female),who perceive themselves as belonging to a lower social class and those who have had positive experiences from their interaction with institutions. Findings are especially important in the context of countries with weak institutions and democracy, such as the case of Western Balkans (focus of this paper) and urge for a strengthening of institutions which regulate and support the citizens’ integration into society.
TL;DR: This paper used debiased estimators based on the Gini coefficient and the Mean Logarithmic Deviation (MLD) to measure the effect of each circumstance on IOP and provided valid standard errors.
Abstract: Inequality of Opportunity (IOp) is considered an unfair source of inequality, an obstacle for economic growth and a determinant of preferences for redistribution. IOp can be estimated in two steps: (i) fitted values are estimated by predicting an outcome given some circumstances out of the control of the individual, (ii) the inequality in the distribution of the fitted values is measured by some inequality index. Using machine learners in the prediction step allows to consider a rich set of circumstances but it leads to biases in the estimation of IOp. We propose to use debiased estimators based on the Gini coefficient and the Mean Logarithmic Deviation (MLD). Further, we measure the effect of each circumstance on IOp and provide valid standard errors. To stress the usefulness of inference, we provide a test to compare IOp in two populations and a group test to check joint significance of a group of circumstances. We use the debiased estimators to measure IOp in 29 European countries. Romania and Bulgaria are the countries with highest IOp. Southern countries tend to have high levels of IOp while Nordic countries have low IOp. Debiased estimators are more robust to the choice of the machine learner in the first step. Mother’s education and father’s occupation are key circumstances to explain inequality. JEL Classification: C13, C14, C21, D31, D63
01 Jan 2022
TL;DR: In this paper , the normative foundation of the theory of (in)equality of opportunity, the different declinations of the principle of equality of opportunity proposed by the literature and its mathematical construct, and the most recent empirical findings on the measurement of inequality of opportunity in both the monetary and non-monetary spaces are discussed.
Abstract: This chapter provides a discussion of the normative foundation of the theory of (in)equality of opportunity, the different declinations of the principle of equality of opportunity proposed by the literature and its mathematical construct. It also offers a review of the most recent empirical findings on the measurement of inequality of opportunity in both the monetary and non-monetary spaces.
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TL;DR: The author found that the socioeconomic factors were related indirectly to children's academic achievement through parents' beliefs and behaviors but that the process of these relations was different by racial group.
Abstract: This study examined the process of how socioeconomic status, specifically parents’ education and income, indirectly relates to children’s academic achievement through parents’ beliefs and behaviors. Data from a national, cross-sectional study of children were used for this study. The subjects were 868 8‐12-year-olds, divided approximately equally across gender (436 females, 433 males). This sample was 49% non-Hispanic European American and 47% African American. Using structural equation modeling techniques, the author found that the socioeconomic factors were related indirectly to children’s academic achievement through parents’ beliefs and behaviors but that the process of these relations was different by racial group. Parents’ years of schooling also was found to be an important socioeconomic factor to take into consideration in both policy and research when looking at school-age children.
2,196 citations
TL;DR: In this article, the authors show that unearned income in the hands of a mother has a bigger effect on her family's health than income under the control of a father; for child survival probabilities the effect is almost twenty times bigger.
Abstract: If household income is pooled and then allocated to maximize welfare then income under the control of mothers and fathers should have the same impact on demand. With survey data on family health and nutrition in Brazil, the equality of parental income effects is rejected. Unearned income in the hands of a mother has a bigger effect on her family's health than income under the control of a father; for child survival probabilities the effect is almost twenty times bigger. The common preference (or neoclassical) model of the household is rejected. If unearned income is measured with error and income is pooled then the ratio of maternal to paternal income effects should be the same; equality of the ratios cannot be rejected. There is also evidence for gender preference: mothers prefer to devote resources to improving the nutritional status of their daughters, fathers to sons.
2,012 citations
TL;DR: In this paper, the authors consider a wide class of inequality indices and identify those which are additively decomposable, including the squared coefficient of variation and the two Theil's entropy formulas.
Abstract: This paper considers a wide class of inequality indices and identifies those which are additively decomposable. The sub-class of mean independent, additively decomposable measures turns out to be a single parameter family which includes the squared coefficient of variation and the two Theil's entropy formulas.
1,566 citations
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TL;DR: In this paper, the authors argue that the poor in developing countries do typically share in the gains from rising aggregate affluence and in the losses from aggregate contraction, while the other side has focused on the diverse welfare impacts found beneath the averages.
Abstract: One side in the current debate about who benefits from growth has focused solely on average impacts on poverty and inequality, while the other side has focused on the diverse welfare impacts found beneath the averages. Both sides have a point. The evidence is compelling that the poor in developing countries do typically share in the gains from rising aggregate affluence and in the losses from aggregate contraction. But how much do poor people share in growth? Do they gain more in some settings than others? Do some gain while others lose? Does pro-poor growth mean more or less aggregate growth? Recent theories and evidence suggest some answers, but deeper microeconomic empirical work is needed on growth and distributional change. Only then will we have a firm basis for identifying the specific policies and programs needed to complement and possibly modify growth-oriented policies. This paper - a product of Poverty and Human Resources, Development Research Group - is part of a larger effort in the group to better inform development policy debates.
1,270 citations
TL;DR: The evidence is compelling that the poor in developing countries do typically share in the gains from rising aggregate affluence and in the losses from aggregate contraction as mentioned in this paper. But how much do poor people share in growth? Do they gain more in some settings than others? Do some gain while others lose? Does pro-poor growth mean more or less aggregate growth?
966 citations