TY  - RPRT
        AU  - Aaberge, Rolf
AU  - Mogstad, Magne
AU  - Peragine, Vito
        TI  - Measuring Long-Term Inequality of Opportunity
        PY  - 2010/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4714
        UR  - https://www.iza.org/publications/dp4714
        AB  - 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.
        KW  - permanent income
KW  - inequality
KW  - social welfare
KW  - equality of opportunity
KW  - intertemporal choice
KW  - ex-ante
KW  - ex-post
        ER  -