Economic Development as Opportunity Equalization

Abstract:     
The justification of using GNP per capita as a measure of economic development is utilitarian ethics plus an assumption that no needs are more urgent than others. Here, we advocate a measure of economic development based on the degree to which the society in question has equalized opportunities for the acquisition of income. In highly developed economies, inequality of opportunity accounts for less than 10% of total inequality, while in developing economies, it accounts for over 30%.

Number of Pages in PDF File: 27

Keywords: Equality of opportunity, Economic development

JEL Classification: O10, D63

working papers series