Measuring Inequality of Opportunity with Imperfect Data: the case of Turkey

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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Submitted on : Tuesday, November 20, 2012 - 9:44:41 AM
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Francisco H.G. Ferreira, Jérémie Gignoux, Meltem Aran. Measuring Inequality of Opportunity with Imperfect Data: the case of Turkey. Journal of Economic Inequality, Springer Verlag, 2011, 9 (4), pp.651-680. ⟨10.1007/s10888-011-9169-0⟩. ⟨halshs-00754497⟩

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