Measuring Inequality of Opportunity with Imperfect Data: The Case of Turkey

42 Pages Posted: 20 Apr 2016

See all articles by Francisco H. G. Ferreira

Francisco H. G. Ferreira

World Bank - Development Research Group (DECRG)

Jeremie Gignoux

Paris School of Economics (PSE)

Meltem A. Aran

Development Analytics

Date Written: February 1, 2010

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 and an ancillary household expenditure survey are available. One method relies only on the demographic and health survey, and constructs a wealth index as a measure of economic advantage. The alternative method imputes consumption from the ancillary survey into the demographic and health survey. In both cases, the between-type share of overall inequality is computed as a lower bound estimator of inequality of opportunity. Parametric and non-parametric estimates are calculated for both methods, 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 percent (31 percent) of overall inequality in imputed consumption (the wealth index).

Keywords: Inequality, Economic Theory & Research, Population Policies, Rural Poverty Reduction, Equity and Development

Suggested Citation

Ferreira, Francisco H. G. and Gignoux, Jeremie and Aran, Meltem A., Measuring Inequality of Opportunity with Imperfect Data: The Case of Turkey (February 1, 2010). World Bank Policy Research Working Paper No. 5204. Available at SSRN: https://ssrn.com/abstract=1559721

Francisco H. G. Ferreira (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-4382 (Phone)

Jeremie Gignoux

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Meltem A. Aran

Development Analytics ( email )

31 Mektep Sokak
Emirgan
Istanbul, Istanbul 34467
Turkey
902122778641 (Phone)

HOME PAGE: http://www.developmentanalytics.org

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