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Born with a Silver Spoon : Inequality in Educational Achievement across the World
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Year: 2015 Publisher: Washington, D.C., The World Bank,

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This paper assesses inequality of opportunity in educational achievement using the Human Opportunity Index methodology on data from the Programme for International Student Assessment. The findings suggest that there are large inequalities in lea


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Unequal Opportunity, Unequal Growth
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Year: 2016 Publisher: Washington, D.C. : The World Bank,

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This paper argues that inequality can be both good and bad for growth, depending on what inequality and whose growth. Unequal societies may be holding back one segment of the population while helping another. Similarly, high levels of income inequality may be due to a variety of different factors; some of these may be good while others may be bad for growth. The paper tests this hypothesis by "unpacking" both inequality and growth. Total inequality is decomposed into inequality of opportunity, due to observed factors that are beyond the individual's control, and residual inequality. Growth is measured at different steps of the income ladder to verify whether low, middle, and top income households fare differently in societies with high (low) levels of inequality. In an application to the United States covering 1960 to 2010, the paper finds that inequality of opportunity is particularly bad for growth of the poor. When inequality of opportunity is controlled for, the importance of total income inequality is dramatically reduced. These results are robust to different measures of inequality of opportunity and econometric methods.


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Does Improved Local Supply of Schooling Enhance Intergenerational Mobility in Education? Evidence from Jordan
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Year: 2016 Publisher: Washington, D.C. : The World Bank,

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The impact of the growth of the local supply of public schools in the post-Colonial period on intergenerational mobility in education is a first-order question in the Arab World. This question is examined in Jordan using a unique dataset that links individual data on own schooling and parents' schooling for adults, from a household survey, with the supply of schools in the subdistrict of birth at the time the individual was of age to enroll, from a school census. The identification strategy exploits the variation in the supply of basic and secondary public schools across cohorts and subdistricts of birth in Jordan, controlling for year and subdistrict-of-birth fixed effects and interactions of governorate and year-of-birth fixed effects. The findings show that the local availability of basic public schools does, in fact, increase intergenerational mobility in education. For instance, a one standard deviation increase in the supply of basic public schools per 1,000 people reduces the father-son and mother-son associations of schooling by 18-20 percent and the father-daughter and mother-daughter associations by 33-44 percent. However, an increase in the local supply of secondary public schools does not seem to have an effect on the intergenerational mobility in education.


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Equality of Opportunity : Theory and Evidence
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Year: 2015 Publisher: Washington, D.C., The World Bank,

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Building on earlier work by political philosophers, economists have recently sought to define a concept of equity that accommodates the fairness of reward to individual responsibility and effort, while allowing for the existence of some inequalities which are unfair and should be compensated. This paper-commissioned as a chapter for the Oxford Handbook of Well Being and Public Policy-provides a critical review of the economic literature on equality and inequality of opportunity. A simple 'canonical model' of equal opportunity is proposed, and used to explore the two fundamental concepts in this (relatively) new theory of social justice: the principles of compensation and reward. Ex-ante and ex-post versions of the compensation principle are presented, and the tensions between them are discussed. Different approaches to the measurement of inequality of opportunity-and empirical applications-are reviewed, and implications for the measurement of poverty and of the rate of economic development are discussed.


Book
Equality of Opportunity : Theory and Evidence
Authors: ---
Year: 2015 Publisher: Washington, D.C., The World Bank,

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Abstract

Building on earlier work by political philosophers, economists have recently sought to define a concept of equity that accommodates the fairness of reward to individual responsibility and effort, while allowing for the existence of some inequalities which are unfair and should be compensated. This paper-commissioned as a chapter for the Oxford Handbook of Well Being and Public Policy-provides a critical review of the economic literature on equality and inequality of opportunity. A simple 'canonical model' of equal opportunity is proposed, and used to explore the two fundamental concepts in this (relatively) new theory of social justice: the principles of compensation and reward. Ex-ante and ex-post versions of the compensation principle are presented, and the tensions between them are discussed. Different approaches to the measurement of inequality of opportunity-and empirical applications-are reviewed, and implications for the measurement of poverty and of the rate of economic development are discussed.


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Economic Growth and Equality of Opportunity
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Year: 2013 Publisher: Washington, D.C., The World Bank,

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The paper proposes an approach to understand the relationship between inequality and economic growth obtained by shifting the analysis from the space of final achievements to the space of opportunities. To this end, it introduces a formal framework based on the concept of the Opportunity Growth Incidence Curve. This framework can be used to evaluate the income dynamics of specific groups of the population and to infer the role of growth in the evolution of inequality of opportunity over time. The paper shows the relevance of the introduced framework by providing two empirical analyses, one for Italy and the other for Brazil. These analyses show the distributional impact of the recent growth experienced by Brazil and the recent crisis suffered by Italy from both the income inequality and opportunity inequality perspectives.


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Crossing Boundaries : Gender, Caste and Schooling in Rural Pakistan
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Year: 2011 Publisher: Washington, D.C., The World Bank,

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Can communal heterogeneity explain persistent educational inequities in developing countries? The paper uses a novel data-set from rural Pakistan that explicitly recognizes the geographic structure of villages and the social makeup of constituent hamlets to show that demand for schooling is sensitive to the allocation of schools across ethnically fragmented communities. The analysis focuses on two types of social barriers: stigma based on caste affiliation and female seclusion that is more rigidly enforced outside a girl's own hamlet. Results indicate a substantial decrease in primary school enrollment rates for girls who have to cross hamlet boundaries to attend, irrespective of school distance, an effect not present for boys. However, low-caste children, both boys and girls, are deterred from enrolling when the most convenient school is in a hamlet dominated by high-caste households. In particular, low-caste girls, the most educationally disadvantaged group, benefit from improved school access only when the school is also caste-concordant. A policy experiment indicates that providing schools in low-caste dominant hamlets would increase overall enrollment by almost twice as much as a policy of placing a school in every unserved hamlet, and would do so at one-sixth of the cost.


Book
Lower Bounds on Inequality of Opportunity and Measurement Error
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Year: 2015 Publisher: Washington, D.C. : The World Bank,

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When measuring inequality of opportunity, researchers usually opt to eliminate within-type variation. Provided that in practice it is impossible to observe all circumstances, this implies that the researcher estimates a lower bound of the true level of inequality of opportunity. By using data drawn from 27 Demographic Household Surveys (circa 2008), it is found that lower bound estimates can have substantial measurement error, and that measurement error can vary considerably across countries. As a consequence, lower bound estimates of inequality of opportunity can demand too little redistribution to equalize inequalities due to circumstances and can make the "traditional" cross-country comparisons misleading.


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The Measurement of Educational Inequality : Achievement and Opportunity
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Year: 2011 Publisher: Washington, D.C., The World Bank,

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This paper proposes two related measures of educational inequality: one for educational achievement and another for educational opportunity. The former is the simple variance (or standard deviation) of test scores. Its selection is informed by consideration of two measurement issues that have typically been overlooked in the literature: the implications of the standardization of test scores for inequality indices, and the possible sample selection biases arising from the Program of International Student Assessment (PISA) sampling frame. The measure of inequality of educational opportunity is given by the share of the variance in test scores that is explained by pre-determined circumstances. Both measures are computed for the 57 countries in which PISA surveys were conducted in 2006. Inequality of opportunity accounts for up to 35 percent of all disparities in educational achievement. It is greater in (most of) continental Europe and Latin America than in Asia, Scandinavia, and North America. It is uncorrelated with average educational achievement and only weakly negatively correlated with per capita gross domestic product. It correlates negatively with the share of spending in primary schooling, and positively with tracking in secondary schools.


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Lower Bounds on Inequality of Opportunity and Measurement Error
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Year: 2015 Publisher: Washington, D.C. : The World Bank,

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Abstract

When measuring inequality of opportunity, researchers usually opt to eliminate within-type variation. Provided that in practice it is impossible to observe all circumstances, this implies that the researcher estimates a lower bound of the true level of inequality of opportunity. By using data drawn from 27 Demographic Household Surveys (circa 2008), it is found that lower bound estimates can have substantial measurement error, and that measurement error can vary considerably across countries. As a consequence, lower bound estimates of inequality of opportunity can demand too little redistribution to equalize inequalities due to circumstances and can make the "traditional" cross-country comparisons misleading.

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