TY  - RPRT
        AU  - Niehues, Judith
AU  - Peichl, Andreas
        TI  - Lower and Upper Bounds of Unfair Inequality: Theory and Evidence for Germany and the US
        PY  - 2011/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5834
        UR  - https://www.iza.org/publications/dp5834
        AB  - Previous estimates of unfair inequality of opportunity (IOp) are only lower bounds because of the unobservability of the full set of endowed circumstances beyond the sphere of individual responsibility. In this paper, we suggest a new estimator based on a fixed effects panel model which additionally allows identifying an upper bound. We illustrate our approach by comparing Germany and the US based on harmonized micro data. We find significant and robust differences between lower and upper bound estimates – both for gross and net earnings based either on periodical or permanent income – for both countries. We discuss the cross-country differences and similarities in IOp in the light of di¤erences in social mobility and persistence.
        KW  - redistribution
KW  - fairness
KW  - equality of opportunity
KW  - wage inequality
        ER  -