Equity and Equality

IZA Discussion Paper No. 2284

CIRPEE Working Paper No. 06-29

49 Pages Posted: 10 Aug 2006

See all articles by Jean-Yves Duclos

Jean-Yves Duclos

Laval University; IZA Institute of Labor Economics

Date Written: September 2006

Abstract

Is horizontal equity (HE) the "most widely accepted principle of equity"? Or does it stand in "opposition to the advancement of human welfare"? This paper argues that the case for the HE principle is not as straightforward as is usually thought and that it requires advanced notions of justice and well-being. The most likely ethical basis for HE appears to combine a Rawlsian maximin principle and a view of well-being that allows for relative local comparison effects. The paper also explores some of the dimensions of equality and well-being along which the HE principle can be applied and presents a number of examples showing how HE considerations can provide an important input into policy analysis.

Keywords: Horizontal equity, vertical equity, redistribution, equality, social justice

JEL Classification: D31, D60, D63, I30

Suggested Citation

Duclos, Jean-Yves, Equity and Equality (September 2006). IZA Discussion Paper No. 2284, CIRPEE Working Paper No. 06-29, Available at SSRN: https://ssrn.com/abstract=923598 or http://dx.doi.org/10.2139/ssrn.923598

Jean-Yves Duclos (Contact Author)

Laval University ( email )

Quebec G1K 7P4
Canada
418-656-7096 (Phone)
418-656-9727 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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