New research: Robust Inequality of Opportunity Comparisons: Theory and Application to Early-Childhood Policy Evaluation

The paper "Robust Inequality of Opportunity Comparisons: Theory and Application to Early-Childhood Policy Evaluation" was accepted for publication in the Review of Economics and Statistics. The paper is written jointly by Tarjei Havnes, Associate Professor and Director of OFS, and Francesco Andreoli, Researcher at the Luxembourg Institute of Socio-Economic Research (LISER), and Arnaud LeFranc, Professor at Université de Cergy-Pontoise.

Abstract

This paper develops a criterion to assess equalization of opportunity that is consistent with theoretical views of equality of opportunity. We characterize inequality of opportunity as a situation where some groups in society enjoy an illegitimate advantage. In this context, equalization of opportunity requires that the extent of the illegitimate advantage enjoyed by the privileged groups falls. Robustness requires that this judgement be supported by the broadest class of individual preferences. We formalize this criterion in a decision theoretic framework, and derive an empirical condition for equalization of opportunity based on observed opportunity distributions. The criterion is used to assess the effectiveness of child care at equalizing opportunity among children, using quantile treatment effects estimates of a major child care reform in Norway. Overall, we find strong evidence supporting equalization of opportunity.

The full article can be accessed here.

Published July 16, 2018 12:00 PM - Last modified Oct. 11, 2018 8:04 PM