%0 Report
        %A Aaberge, Rolf
%A Mogstad, Magne
%A Peragine, Vito
        %T Measuring Long-Term Inequality of Opportunity
        %D 2010
        %8 2010 Jan
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4714
        %U https://www.iza.org/publications/dp4714
        %X In this paper, we introduce and apply a general framework for evaluating long-term income distributions according to the Equality of Opportunity principle. Our framework allows for both an ex-ante and an ex-post approach to EOp. Our ex-post approach relies on a permanent income measure defined as the minimum annual expenditure an individual would need in order to be as well off as he could be by undertaking inter-period income transfers. There is long-term ex-post inequality of opportunity if individuals who exert the same effort have different permanent incomes. In comparison, the ex-ante approach focuses on the expected permanent income for individuals with identical circumstances. Hence, the ex-ante approach pays attention to inequalities in expected permanent income between different types of individuals. To demonstrate the empirical relevance of a long-run perspective on EOp, we exploit a unique panel data from Norway on individuals' incomes over their working lifespan.
        %K permanent income
%K inequality
%K social welfare
%K equality of opportunity
%K intertemporal choice
%K ex-ante
%K ex-post