Measuring the Inequality of Well-Being: the Myth Of

CEU eTD Collection In partial fulfil l Department International of Relations and European Studies Measuring the Inequality of Well of Inequality the Measuring The Myth of “ of Myth The ment of the requirements f Supervisor: Professor Thomas Fetzer Central European University Budapest, Hungary Lauri Peterson Submitted to Submitted eyond GDP beyond Going 2013 By

or the degreeor the of Master of Arts

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CEU eTD Collection Abstract Acknowledgement List of Figu List of Abbreviations of List Introduction Chapte ChapterWell 2 –How do Chapter 3 –Discussion Conclusion Bibliography Research Question and Aim the of Thesis Structure of the Thesis of Structure 1.1 Economic Inequality 1.2 Educational Inequality 1.3 HealthInequality 1.4 Gender Inequality1.4 Gender 1.5 Subjective Inequality 2.2 Educational Inequality: IHDI 2.1 Economic Inequality: GPI, SSI, IEWB, ISEW, Globeco’s WHI, IHDI 2.3 HealthInequality: IHDI 2.4 Gender Inequality:2.4 Gender GGG, SSI GII, 2.5 Subjective Inequality: LPI 3.2 Limitations 3.2 the Limitations of proposal 3.1 for A Proposal Future Well r 1 – r

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CEU eTD Collection T Figure 2.“ F igure 1. “Pen’s Parade Approach” “Pen’s 1. Parade igure able . “Types of Inequality as How dowellHow - being indices measure inequality? sub

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CEU eTD Collection WHO WHI UNDP UNDESA UN SSI OECD LPI ISEW IEW IHDI HPI HDI GPI GNI GGG GEM GDP GDE

of List Abbreviations v

Legatum ProsperityLegatum Index Index of Sustainable Economic Welfare Well ofIndex Economic Index Inequality Index Planet Happy Index Development Human ProgressGenuine Indicator Income GrossNational Gap; Gender Global Gender Empowerment Measure GrossDomestic Product Gender World Health Organization Health World Happiness IndexWorld Nations DevelopmentUnited Program AffairsSocial and of Economic Nations Department United Nations United Sustainable Society Index Development Co forOrganisation Economic

- related Development Index - Adjusted Human DevelopmentAdjusted Human

Being

operation andoperation

CEU eTD Collection Provinces, 1989– disparity; b)evenness; social disparity c) of distribution or opportunity […]. becan understood the in most sense basic well on human society in opportunities poorest the for capital. Mor wayhowthe it supports s as ality inequ on income problem worrying marginalized, to benef growth and economic inclusive goals equitable require our will Achievingdaunting. and pronounced their sex, age, disability or ethnicity. Disparities between urban and rural areas are also othe or are ladder economic bypass lowestonthe those are who “Progress tends Development to as follows: Goals Report Foreword Millennium of 2011 the been recognized as such by Ban Ki ( institutions global governments and such as national researchers, but alsoof on inequality have on inequality UN

Benin and Iran. ) . Inequality is noted to be an important obstacle to developing human wel to developing obstacle important an to be is noted Inequality . Inequality is a global issue to Third thatis isglobal restricted countries not a only World Inequality The 4 3 2 1 its influence order in inequality to isby understand meant what It to define is important —growth that reaches everyone and t

Merriam Chinese Nine in Inequality Income and Opportunity of “Inequality Eriksson, Tor and Zhang Yingqiang Data. Index World BankGini Nations, United eover, high distribution of well 2006,” - Webster, -Webster, being. Academic literature discusses several dimensions of inequality.

2 been over the fact in a number a in of countries Western such a The effect China Economic Review China

the level as it from economic opportunities.”it from economic Millennium Millennium

The Merriam interpersonal ocietal injustice, segregation inefficientocietal and use of or human physical s

Development Goals Report 2011 Report Goals Development of inequality

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of (2010): 612,(2010): doi:10.1016/j.chieco.2010.06.008.

–hindering their access to higher levels of well inequality inequality

Introduction which type of equality is most the in important, whether

or as “the of b quality society

can be detrimental to the well Portugal hat will enable all people, especially the poor and 1 , Revised (Merriam Webster Mass Market, 2004). Market, Mass Webster (Merriam , Revised

can alsobe sign a of the lack of economic has attracted the not attention of theonly - General of the General whoUN, expressed the in

which report which , June 2011, p.3 , June 1

s for US example the eing unequaleing or uneven: lack ofa) rwise disadvantaged because of s

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nequality

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icesind on a global scale. global ona Despite an ample amount of literature on the measurement of well This of

thesis thesis well tackle the issue of within - t portrays t

being. Moreover, inequality y discussed in detail the issue discussedthe y detail in focuses well onthe he

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common indices ofwell human indices common interpretation of term the

. It will aim to answer the research question the average well . E its quality is regardedofwell ofquality human asvalues one the

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it should noted be economic and non- economic and

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6 5 All the indices chosen for analysis in this thesis are either sensitive for inequality or sensitiveeither for inequality for chosen this in indices the analysis are thesis All aims at furtheri at aims thesis The he the

economic economic

An Extensive Analysis of GNH Index of GNH Analysis Karma et Ura al., An Extensive Esty, Daniel C., M.A. Levy, C.H. Kim, A. de Sherbinin, T. Srebotnjak, and V. Mara. Mara. V. and Srebotnjak, T. Sherbinin, A.de Kim, C.H. Levy, M.A. C., Daniel Esty, country. Thecountry. indices thathave been chosen for further global entail examination a

measurement.

which is not universal is not which - average measures such as the being indices measure inequality and what type of interpersonal inequality they have they what of and interpersonal type inequality indicesbeing inequality measure growth indicator country basis (as opposed toan average global well

(GDP indicator list.- The well term - being. being. -

ng the discussion the ng disparities onthe

per capita), the state of governance (Failed State Index) or the

clear signs authors thatthe clear of considered indices the have due to the fact that it includes specific sub specific thatit- toincludes fact the due and regions and

- thatgo indices develop to order in country, a in being

GDP , unlike, for Bhutan’s example Gross 3 al indices measure worldwide human well per capita

- functioning society. These society. subfunctioning -

(Centre for Bhutan Studies, May 2012). May Studies, Bhutan for (Centre which donot being index inbeing this case refers to an pe of inequality that they aim to aim thatthey ofpe inequality universal index). universal

of well human

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Wilkinson, Richard , and Kate Pickett. “The problems of relative deprivation: why some societies do do societies some why deprivation: relative of problems “The Pickett. Kate and , Richard Wilkinson, ut measurement the of economic and non-

aim to measure human well

cribing the human well human the cribing Social science & medicine, 1 Nov. 1 medicine, 2007 & science Social being the used by indices UN various NGO and

. Such indices are desc - being indices that are better grounded reality.in Inequalities bewill

chapters. Firstly, atheoretical framework is provided on the al ranking of world states.If acountryfares well in terms of 7

being. It will become apparent that and role the discusses - being indices measure (in the chapter “Theoretical - being butbeing into account alsotake

ribed andribed organizedbased on

framework economic inequality, toeconomic find out the sel limitations of current inequality inequality current limitations of ected

- chapter. The thesis deduces being measurementshave economic aspect of well

indices are divided intoindices divided are - s such asL the s such

the majority of well distributional issues -

being index a review of clusters of clusters egatum - - . CEU eTD Collection well opportunity. job education and interpersonal levels of well not human actual mirror well stagnation the captured ofwell human have economy of a country does not accurately reflect human well shown thatthe Studies inequality. have still indices income measure these ofshort majority the as other mainly and i a in inequality gender education and towards and inequality of inclusion the economic health, standardthe of definition on focus and mainly inc being ncluded in the studymeasurement the in aim GDPncluded ofdevelopment to by replace human per capita - - being indices while indicesbeing while also possible considering critique indicesbeing aim 8

Kakwani, N. “Performance in living standar living in “Performance N. Kakwani, inequality

economic means (as stat

n to move beyond measures of purely economic success that in reality do do success reality in economic of purely measuresthat beyond to move

should non describe instead - inequality uality. The ineq fourthome suggest chapter

The last part of the makes third chapter a proposal for future - sensitive- well - being, thenbeing, sub - - ed in the reports of the index). T reports index). the of the in ed being despite an increase in GDP per capita. ds.” 5

Journal of Development Economics, 1993 Economics, Development of Journal

being index. M being index. income inequalities income and challenges indicators that meant are to c - being: several well ost of well the .

how to move beyond to move how

in termsin of his, however, fallshis, - - being indicesbeing being indices

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CEU eTD Collection Income, 1929- Beyond GDP, Brussels: Beyond GDP, 2007). GDP, Beyond Brussels: GDP, Beyond is the distributional problem freeand -rider resources, with asnatural issues such deal adequately not does “GDP WWF: and OECD, of Rome, Club Parliament, European Commission, European the by organized conference, GDP” “Beyond the at Committee, Economic adopted by the by adopted better life. John a opportunity for individuals’ thatrestrict obstacles reducing aims at of opportunity Inequality individual’s achievements the while latter to individual’san ability to reach those achievements. “ c which all, of first means donot show distribution. which average modelsgrowth based and opportunities terms in of inequality behind literature theoretical broad distribution of Domestic aware who are actually benefitting from it country: a in produced distribution well of measures of economic devel E inferred from measurement a of national income“ personaldistributionthe is. of known income Printing Office, 1934), 7. 1934), Office, Printing ( conomists, and politicians have philosopherscome to conclusion the alike thatper capita in ) equality of opportunity” Even though Even 11 10 9 lusters deduced from be can

Simon Kuznets, United States Bureau of Foreign and Domestic Commerce, and John M. Blair, National Blair, M. John and Commerce, Domestic and Foreign of Bureau States United Kuznets, Simon

Anne Phillips, “Defending Equality of Outcome,” Jour of Outcome,” Equality “Defending Anne Phillips, Parliament European the of Chair the Berès, Pervenche as such speakers by stated been also has This

32: Letter from the Acting Secretary of Commerce Transmitting in Response to Senate Resolution Senate to in Response Transmitting of Commerce Secretary Acting the from Letter 32:

into debate the oninequality, terms in of opportunities outcomes, and secondly, and Product,

to well

majority of well Roemer well - being -

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definitions of the most prominent the the -

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: “Economic welfare cannot be adequately measured unless

actual well indices which refers to

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population average of all goods and services goods ofand all average population [...] - being indices. being .

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12, no. 1(March 2004): 1.

outcome inequality outcome

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what

hite, hite, s noted a Ibid. Roe E. John 53 Ibid., Ibid. White, W Stuart Ibid.; Equality of Opportunity Roemer, E. John .

on the otheron the thbutis goesbeyond includes principle hand it,demanding

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as defined by hite, hite, , 61. considers cholar of topic on the has equality, Equality of Opportunity

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(Cambridge, Mass: Harvard University Press, 1998), 6. 1998), Press, University Harvard Mass: (Cambridge, University Press, 2000),(Harvard 1.

and theand “level is an ideal “thewhere distribution of economic goods, . their differential abilities, but not for their dif 18

person’s productivity based on his or her effort but but effort his or her on based productivity person’s Others such as Arthur M. Okun have criticizedthis have M.such Okun Othersas Arthur 16 t

ing point inequalities, there have been have there attempts at point inequalities, ing 59. 7 his/her

of concept of

concerning the amount of effort spent by amountspent the by ofconcerning effort

checking for person’s a checking will arewill held “strong meritocracy” - the

can correspondingly referred to as “weak . fair 14 - playing Roemer’s

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inct categories of due to freedue will

or luck”, “option letting individuals , for example, 23 22 21 20 19 In order to make adifference between inequality

inequality whileinequality for accounting fact the

due to bad life choices life to bad due - Philosophy & Public Affairs &Public Philosophy Resources,” of Equality 2: Part Equality? Is “What Dworkin, Ronald 73. Ibid., of Equality Practice and Theory The Virtue: Sovereign Dworkin, Ronald Roemer, Tra Big The Efficiency: and Equality M.Okun, Arthur market attributes in the labor market. labor the in attributes market

“option while , remains.

to undertake

a distinction between “brute luck” and luck”. “option “bruteluck” distinction between a

Equality of Opportunity circumstance countability for thatbehavior.”

from from

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question

disparities that are caused by of individual) the beyond

and how much effor much how and luck” characterizes inequality laborious and

some s ,

or or one chooses to gamble choosesone Roemer nevertheless Dworkin , 1998, 8. , caused by caused

affect hisrelevant behavior in away that relieves him or ’s

the decide

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negligent remains how the existence of t th

8 19 that

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whether individuals’ were affected by “brute an individual’san socio low

43. 1975), Press, Institution (Brookings prefer a disabilitya

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the we cannot segregate people into two hile one one theoretically hile could

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CEU eTD Collection actually entail information, luck” “option insensitive greatest benefit of the least advantaged, consistent with the just savings principle, and (b) principle system of equal basic liberties compatible with asimilar system of liberty for all”, and the second first the which of rule law. the personal property and freedom of speech and freedomassembly, of thought, freedom of the person, right the of goods” “ such Amartya Sen r onthebased idea that choices predict a person’s preference. T theirin adulthood upbringing, his by environment shaped extent Dworkin are meant to be self of and power office opti , on luck” and “brute luck” can “bruteluck” can and timesat be on luck”

people , However, one should acknowledge the fact the should thata one acknowledge However, person’s choices are to aconsiderable 27 26 25 24 John Rawls’

of which the of which ’s

that “social and economic inequalities are to be arranged so that Ibid., 53. Ibid., of Justice Theory A Rawls, John Measurement and Amartya Welfare Sen, Choice, Ibid., 311. :

concept individuals shouldresponsible individuals remain children from lower

determining ,

but should not necessarily be punished for decision The their bad lines. between and are frequently are and

states that “each person is to have an equal right to most the total equal extensive an person is to have “each states that

ecognizes

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are as their parents. did

in hisin book Theory of “A Justice” supported state the by of

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. According. to Rawls, the these are - options

class uneducated families will possibly make the same mistakes in reality

unaware ofunaware long the (Harvar

are which can be . 26 rights Basic

basic

Similarly, Dworkin d University Press,d 1971), 58– This in life without being completely aware of

in case in of “brute luck” individuals’ right

(Harvard University Press, 1997), University 61. (Harvard extremely thin. extremely idea

is considerably unequal. F s, liberties,

on the other on the

is related to his two principles of justice principles two his to related is - both ambition for their own their for - term consequences make decisions based on

’s luck” “option “bruteluck” and are focuses on the concept focuses concept onthe of

opportunities his can behis can

hand 59.

things .

24 sensitive and endowment and sensitive preferences in the case

consistpolitical liberty, of , nevertheless,

or instance, due to their due or instance,

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CEU eTD Collection no. 197– 1, 4(April 1985): (in)equality of outcomes and(in)equality opportunities debate. inclusiven and ess. health such as areas education, in income. health diversity that can influence the life of a person. order to better understand one inequality, should bey go well doings”the as w defined be Amartya Sen’s “capability approach” due objectiveenough considered to their not proponents been the by onpreferences of fixation contemporaries least advantages begin to fall point which over istwo idea onthe based minimum social that the of basic(minimum level needs) is set the at of deprived everyone’s well economic inequalitiesand tothe benefit that This. have most mean would disadvantaged important r thinking, of In line this of opportunity”. fair equality conditions of under to all officespositions and to attached open (Wellington, New Zealand: New Zealand Department of Labour, August 1995), 10. 1995), August Labour, of Department Zealand New Zealand: New (Wellington, - being achievem , basic liberties basic , and which influence schooling turnfuturein of can inequality wealth and However, Rawls’s conceptHowever, ofgoods” “primary 34 33 32 31 30 29 28

Sen’s approach

Sen, “Well Sen, Reexamined Amartya Sen, Inequality “Well Sen, Amartya Equality: Outcomesor Opportunities? A Review Vaithianathan, of the LiteratureRhema Ibid., 252. 13. Ibid., Ibid., 266.

) and “capabilities” which can be explained as aperson’s ability toachieve his or her well - in order in - ell beingual is oneq based cooperation certain and groups society in not would be -

being so

it is -Being, Agency and Freedom,” 200 being achievements ents

198, 200, doi:10.2307/2026184. 198, either not possible tomake savings (increase taxes to ensure to . aims each to increase individual’sand equalevery capability to function 32 -Being, and Agency Freedom: The DeweyPhilosophy Lectures of 1984,” Journal The others prosper could He acknowledges He thatmoney isimportant part an of story the but in . 30 the Keeping the Keeping social minimum bewould of duty the the ulessociety in a have to apply to everyone equally but social

just (Harvard University Press, 1995), University 121– Press, (Harvard ,

(such as being adequately fed and healthy which well

- . can be placed in the in can placed be being of being 10 – 29

33 201. The “just savings principle” Inequality can also come in terms o 31 Sen

and Dworkin’s “luck egal Dworkin’s “luck and f

34 uses the terms “functionings” which can uses which terms the “functionings” uture ond income recognizeand all The main issue with the “capability generations

122. middle ground inside ) or the prospects of the of prospectsthe the ) or

, Occasional Paper

as part of , “the beings and beings “the , itarianism” f access to

principle principle types of

have have

82, the the 28

CEU eTD Collection Reports (UNDP, November 2010), 10. 2010), Reports November (UNDP, consumption of measurement. inequality of The majority indices focus of inequality onthe wealth, to a outcomes. However, rarely state explicitly that they are aiming to measure either the inequality of opportunity or in the practical of by measured inequality will indices country. whoof people have finished school primary can ofmirror level the access in to education a education primary beinstance, issue can both an can alsoexist as, for overlap suchopportunity. as Nevertheless,areas education in considerable inequality in terms of concepts which are similar to well reports”“country but (GGG) into account Gap inequalityGender take of opportunity their betweengendersin of polls opinion (subjective inequality). use the with of opportunity (in)equality universal measure this to thesis by noted has been Index, , education considerably easier to measu that as comp ot than “functionings” more important which are to isdetermine thatit is fact the difficult approach”

well for hers T T 37 36 35 far there have been no attempts to measure the inequality of human well

ared to (in)equality of outcome to (in)equality ared

he clusters of oppor (in)equality the of measurement he A Unique Inquiry into Wealth and Wellbeing:The 2012 Legatum Prosperity Index - Development Human in Inequality of Measurement Kovacevic, Milorad Okun,

than terms in of opportunities or access. index, one the Only ProsperityLegatum or ( incomes Equality and Efficiency consideration well how -

being i being or groups

not part of their actual methodology.not part of their actual M n that has the has that ndices extent they extent re inequality

of inequalityof measureme , 76.

and should adjusted and be for inequality.

most easily accessible type of Hence data). can be isolated into economic and non- isolatedand be into economic can called . -

37 35 being indicesbeing currently foraccount inequality. in termsof well Moreover, authors such as Milorad Kovacevic report Kovacevic such as Milorad authors Moreover, The Gender Inequality (GII) Index Global the and

be “economic inequality” 11

of outcome opportunity and asproportion the tunity has been considered insurmountable insurmountable considered has been tunity nt discussed thisestablished in thesis are - being achievements - being being “outcomes” concepts than of

A Review A ost well

(Legatum Institute, 2012). Institute, (Legatum

. The next set of clusters clusters of set The . next , Human Development Development , Human - bein

such as health and and health such as g indices measure econom

t he first cluster cluster first he - being. ic clusters

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? 2 basis , since There is, however, considerable overlap between overlap clusters the considerable There is, however, thesis this some in and Before Economic 38

access to healthcare Heterogeneous Tails, and the End of the “Inverted of the End the and Tails, Heterogeneous Vs. Middles Homogeneous Palma, G. J.

mak

can be considered ” the and

(of goods and services) and wealth (land and services)wealth and (of goods and )

consumption es which discussing

be a considerable difference between “educational inequality”. The clusters “

a strong distinction between the measurement of the distinction of strong measurement betweenthe a inequality caninequality household), (personal and through measured income be under research

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the first issue first the equality of outcome equality

orking Papers in Economics (Faculty of Economics, University of Cambridge, Cambridge, of University Economics, of (Faculty Economics in Papers orking exhibits I , x ”

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o calculate economic inequality? persons variance financial assets). s

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is signified N 42 41 40 39

Ibid., 123. 91. Ibid., 90 Ibid., Handbook in of Income Distribution Inequality,” of Measurement 2 “Chapter Cowell, F.A. evertheless, However, x try to measure inequality between all persons in asociety thier“taller” and to groups

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91.

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39 question The persons upaccordingto their lined are

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40 , In, this approach

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CEU eTD Collection Development,” Development,” Journal ofEconomic Literature person poorer to person a in should fall signify a inequality transferwhile a from poor person a satisfies the termsset by the Pigou popular particularly has remained The index Gini divided below line. the ofdistribution equality area perfect the line equality the by perfect and The index Gini whole measure developed by chose to take into account extremes. the to include 10%/10%it theiris decides ratioin measurement, a index ofmajority countries has for the last thirty years largely been driven by top income shares. Atkinsonauthors Anthony demonstrated like have - thatwithin the difference canupto be 32 income thehigher than bottom more equal societies such as Sweden and Norway, the top 10% earn account of the differences between the bottom the and 1 comparison of top the 1% range inequality decisions ontype based discrimination, politicalbacklashor distribution O Group- 46 45 44 43

Anthony B Atkinson, Thomas Piketty, and Emmanuel Saez, Emmanuel and Piketty, Thomas Atkinson, B Anthony and Mobility Human Barriers: Overcoming 2009. Report Development Ak Bagchi,“Human 30. Ibid., Roemer, ne

of the m of the Development and Change the extreme points measures, however, focus extreme onthe inequality economic based

defines inequality as the area between the Lorenz curve of the proportion of the proportionthe of of the Lorenzcurve betweenthe asarea the defines inequality .

Equality of Opportunity I n as opposed t order to measure extreme inequality

ost common measures of economic inequality is the inequality economic measures of common ost 49, no. 2011):49, 10, 1(March doi:10.1257/jel.49.1.3.

- based groups as individual targeting groupsbased as individual It alian statistician Corrado Gini which measures inequality across the - 35 times.

42, no. 1 (January 2011): 195. 2011): 42, no. 1(January 10% o distinct extreme groupso distinct extreme as the , 2000, 29– , - Dalton Transfer Principle: the income transfer from aricher

low while in less equal countries like South Afric

absolute 45 - Focusing percentile onthe talent. 3 0. %

(a percen 43 wealthiest the and According to thi According

in practical application

tile

ld be ld wou “Top Incomes in the Long Run of History,” History,” of Run Long the in Incomes “Top , a well- , a - ratio measure)

country incomecountry

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poorest. Generally in which would give an would which - ratio measure

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six times times six 44 clude a clude 46

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CEU eTD Collection no.(April 1996): 1004 20, 7037 BMJ: British States,” Medical Journalited Un The In Index Hood Robin The Of Study Ecological Sectional Cross 1970): 244– http://stats.oecd.org/Index.aspx?QueryId=26067&Lang=en. inequality of inequality percentile the and index equality of distribution the in incomes. to achieve income mean the below to transferred those and income mean the those from above taken that has to be ( Hood index sensitive to the extremes the distribution the while Gini is sensitive to transfers levels. atall wouldto put one like is when more appropriate index Gini the richest in asociety that co theoretically more inequality income measures overall the index the well Turkey. w to a wealthier person should signify a rise in inequality. notion that here 0 indicates complete equal 52 51 50 49 48 47 third A Secondly 48 -

known

Stith, “Income Distribution And Mortality: Mortality: And Distribution “Income -Stith, Prothrow Deborah and Kawachi, Ichiro Kennedy, P. Bruce 255 Inequality,” of Measurement the “On Atkinson, American of Inequality,” D. Allison, “Measures Paul Sociological Review Inequality,” of Measurement the “On Atkinson, B Anthony Sta OECD 2013, 22, April accessed Statextracts,” “OECD Journal Economic The Incomes,” of Inequality the of Measurement “The Dalton, Hugh 263.

some

also known as the Hoover index asHoover the also known OECD countries possibility to measure economic inequality in a country would be to use to inbe would country a inequality economic measure to possibility

, one can measure ine British

well effective -

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ity, 1complete and inequality and politician and quality with the Atkinson the with quality (index) measure

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in Atkinson the measure country, a from 0,188in

Anthony BarnesAnthony Atkinson. –

256. a sense of fairness 52

47 textracts. textracts. 50 This approach contrast approach This

The index Gini from ranges to 0 1 Journal of Economic Theory Economic of Journal The Atkinson Index as compared to The Atkinson Index

already value based measurement

more weight to the lower end of end to lower the more weight

, no. 6 (December 1, 1978):43, no. 6(December 873. 51 Czech Republic t Republic Czech The Atkinson is more index -

for

in its measurement example, 49

2, no. 3 (September no. (September 2, 3 30 (1920): 351. 30 (1920): While the While Gini , s with developed by developed

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CEU eTD Collection Enrollments in Eastern Africa. World Bank Staff Working Papers Number 511 Number Papers Working Staff Bank World Africa. Eastern in Enrollments Self and Inequality Income Between of the Association the Generalisability “Exploring Craig, Neil : outcomes health place other health, ill with correlation that should the not halt of indicatorsdevelopment for its measurement. outcome. of be sign ofa inequality the attainment already could of educational inequality other hand, , education distribution basic of equal the of opportu and ofnity equality the resources isissue toan all of and both outcome opportunity. According to Roemer educational inequality. education Easternin Africa universal measurability. For example, Maas and Criel of educaindicator 1.2 next set of clusters. towards non- and inequality distribution well of such of measurement the other inequalities could as health be bettera predictor of the g personof a can of the livelihood second to Rawls’ This juxtaposed be could measure principle of justice which states that the assessed Health,” Social Health,” Science-assessed & Medicine Educational Inequality Educational Educational re Educational The measurement of economic inequality assumes the notion that the income or wealth 56 55 54 53 is inequality challenge the of an finding educational measuring issuesfor ofOne main the

Roemer, School of Primary Distribution Bank, World Washington and Criel, Geert Maas, Lutsenburg van Jacob Despite Rawls,

such as on the primary school primary level such as onthe A Theory of of Justice Theory A

disadvantaged a study done in Scotland which demonstrated that while income inequality does have a positive positive a have does inequality income while that demonstrated which Scotland in done study a Equality of Op of Equality ive an accurate view of his social stat tion that would striketion thatwould right the betweenobjectivebalance representation and

- being. sources or educational attainment are 55 Primary school enrolment can be considered ameasure of the inequality

This is one of the reasons why we should move beyond economi beyond should move we why reasons the This of one is

portunity economic inequality in terms of education and health, as part of the as part of the health, and terms in education inequality of economic

used “distr used , 69. -dependent factors (or policy choices) can also exert a considerable effect on has to be improved hasimproved to be mostthe

, 1998, 54. ,

60, no. 2005): 2486. 60, 11(June ibution of primary school enrol

, 16

could create amore level playing field. ,

us well and in their 1982 study on the inequality of study theirinequality in 1982 onthe , , July 1, 1982. , July

the equal distribution of educational uniformlynot understood a . 53

- being

ments” as an indicator of .

54 C This could mean that mean could This ommon indicators in

56 term butterm On the the On c

CEU eTD Collection Social Science Research Network, June 10, Research 2005), June Network, 212. Science Social Paper Analysis* level Economy highest level of education aperson achieves. of index Gini that used a inequality”. educational measuring in coefficients Gini and andfour “only previous studies found to have were used coefficients Gini funding. on well influence it mightnot just number the be strongest personthe of thata schoolattainswhich years have stronger marginal value than an increase in - of education inequality onwhat completely authors the considermostdepend the for of index the education. important literacy inequality but ahigh level of tertiary ed these measures literacy” and “distribution of workforce by education level”. been use have “years “percentage of schooling”, tertiary with of population education”, such as apaper by Wail Benaabdelaali, Sa‘īd Development Programme (UNDP), 2010), 16. 2010), (UNDP), Programme Development Development Research Papers (2009 topresent) (Human Development Report Office (HDRO), United Nations , January 1, 2001. , January

3, no. 5 no. 3, Measuring Non Measuring McGillivray, Mark 61 60 59 58 57 Educational inequality has been generally determ issueAnother 59

Ibid., 3, 27. 3, Ibid., Working Research Policy Education. of Coefficients Gini Inequality: Education Measuring al., et Thomas Vinod Sabina Alkire and James Foster, Designing the Inequality Anne Murthi, Mamta Modern Bahrain,” in Inequality Education and Inequality Income of Analysis “An Abdelbaki, H. Hisham ,

has (Oxford University Press, 1997).

(September 2012): 679, doi:10.4236/me.2012.35087; 2012): 679,(September doi:10.4236/me.2012.35087; ac

been the argum

can cording tocording this advancement argument -

being but alsoissues of safety such asquality the schoolseducation, in and

vary greatly. F ,

besides the choiceof an indicatoradequate to measurecational edu educational inequality educational -Catherine Guio, and Jean Drèze, Mortality, Fertility and Gender Bias India: in A District- ent thattheent marginal produ ofct education is higher at or example a state could theoretically have alow level of adult - Economic Well Economic 60

Thomas and Wang alsoreport of studies thatnone the Thomas Wang and

the ratiothe of

61 - Hanchane and Abdelhak Kamal Hanchane Abdelhak and Being Achievement Being This,however, changed in 2010 as later studies 17 ucation inequality. ucation

measured it through educational attainment measured educational it through - Adjusted Human Development Human Adjusted

for example in basic literacy would have a

ined the with help of standard deviations peoplewith college degrees. , SSRN Scholarly Paper (Rochester, NY: 57 One could claim claim resultsthat the of could One

The choice of indicator would The would choiceof indicator

Index (IHDI) ,

have shown that have 58

lower levels More , Human Human , “adult over, -

the the

CEU eTD Collection Economics: Volume 3 Volume Economics: Circumstance,” Inequality Economic on Research Dataset,” New a from Estimates 2010: health affects e effect by Leigh,designated Andrew Christopher Jenck outcomes this 1.3 the measurement of - Insub solved. next be the can insurmountable and can be seen, the issues related to the measurement of educationanot are l inequality should inequality Educational measured be the with index Gini as it has the best current data. production the of modern datasets allow background of a c of a background “L future outcomes. market labor ofworse terms in educ emphasize “Life courses models” the poor keeping impoverished, society, a in prevalence of early childhood poverty can cause aself problemsmore in health than middle aage child from a of suffering from chance higher has a ife courseife models”.

Health Inequality Health , Health inequality Health

it s”

64 63 62 has inspired a number of theories t about of number a inspired has

where poor health has adetrimental effecton job prospects, “educational effects” where

J Currie and B Madrian, “Health, Health Insurance and the Labor Market,” in Handbookof in Labor Market,” Labor the and Insurance Health “Health, Madrian, B and Currie J and Health Childhood of Impact Lasting “The Paxson, Christina and Fertig, Angela Case, Anne 1950 World, in the Inequality “Educational Kamal, Abdelhak and Hanchane, Saîd Wail Benaabdelaali,

and overall and lifelong- well Journal of Health Economics Health of Journal C ducational outcomes , ed. Orley Ashenfelter and David Edward Card (North Holland, Amsterdam: Elsevier, 1999). Elsevier, Amsterdam: (North Holland, Card Edward David and Ashenfelter Orley , ed. hild hashild onits effect lasting a health inequality.

does not

ation outcomes and income rates; income outcomes and ation 63 According to “fetal the According

yet 64 The ot

s that children who suffer chronic illnesses sufferwho chronic s thatchildren 24, no. 2 (March 2 no. 24, , in fact, being as for example ,

and “t and poorer in poorer her

a Ginia coefficient have definition unified have a

he marriage market” theory which states that existing

which is adirect threat 18

2005): 366. 2005): ild ild ch A healthfrom adulthood. in poor family a - s Timothyand M. Smeeding as utero nutrition and as a consequence will have will consequence nutrition as a and utero he relationship between inequality relationshipbetween he chapter we will turn to

theories - - origins hypothesis” the socioeconomic the origins hypothesis” perpetuating cycle of continued inequality inequality of cycle continued perpetuating

20, no. 1 (Ja 1 no. 20,

the “F the thus, early health inequality can affect

better

of world educational attainment. of educational world on health deprivation etal nuary 2012): 337. nuary - - off As an family. outcome, origins the hypothesis” and among academ

to meritocracy

the issues related to

also perform later

“ labor market ics . Similarly, have been

. Despite. in healthin

the As As

CEU eTD Collection Health (Oxford Smeeding M. Nolan,Timothy Brian and Salverda, The Oxford Handbook of Economic Inequality Edited / Wiemer by Salverda,Brian Nolan and Timothy M.Smeeding since take they inequality (as whole opposedlimited population a to into consideration a tothe (similar intergroup differences , health in inequalities measuring di identifie separ Costa resourceWhile endowments suc spectrum inequality economic the facto fundamental scholars as economic inequality. underpinnings havetheoretical inequality of health not same the received amount ofn by attentio healthier members of asociety are the distribution of health in society. in distributionthe of health some income male income adolescent male Health Policy Health Know?,” to Need We Do What Know? fferences; 2) Those Sudhir Finn Anand, Diderichsen, Timothy Evans, Vladimir M. Shkolnikov, Megand Wirth problems ofOne main the rs,

ately from

Timothy Evans et al. (Oxford University Press, 2001), Evans et al. (OxfordUniversity 50. Timothy , ed. Action to Ethics From Action: to Ethics From : - avoid Font Hernández and

68 67 66 65

them of some

Sudhir Anand et al., “Measuring Disparities in Healt Disparities al.,“Measuring Anandet Sudhir Ibid., 203. Costa Joan Smeeding M. Timothy and Jencks, Christopher Leigh, Andrew two categories able determinants such as a

s heterogeneity of a population: a personheterogeneity a population: of a ’s health . 66

methodology of the methodology economic inequality. Incase this

Font and Cristina Hernández Cristina and -Font

. Wagstaff, Paci and Van Doorslaer report that concentration indices which measure s unavoidable

in the US the in of - ,

Quevedo

not only age and genetics play a hea There are several reasons for that.

h as income h as income could predict already individual’san health, authors authors have extensively used lth inequality indices: 1) Those

which to acertain extent one encounters one health similar health a in be to report ,

Gini index

such as age, genetic background 67 note economic that inequality does not necessarily reflect on average

person’s Forreason this differences be

Quevedo, “Measuring Inequalities in Health: What Do We We Do What Health: in Inequalities “Measuring -Quevedo, 106, no. 2 (July 2012):2 (July 195. 106, no. ) can be considered 19

wealth : Oxford University Press, 2009., n.d.), 1 n.d.), 2009., Press, University : Oxford

more to likely

Challenging Inequities in in Inequities Challenging in Indicators,” and Methods h: when measuring when tween individuals. tween . This is This exemplified. by the fact ealth inequality should inequality measured be health

, “Health and Economic Inequality,” in in Inequality,” Economic and “Health , can be be multitudeof a can influenced by role but also a person’s position on person’s butrole alsoa on position can translate

concentration indices concentration

condition as condition

get marr get

the bestthe indicators of health which measure

health inequality is inequality the health and gender and 68

into health inequality. into health F i ed or the purpose of or purpose the of

. 60 year old high 60 year 65 However, the 1 – ,

12.

which showwhich but alsoby , ed. Wiemer intergroup

that

low sub - - -

CEU eTD Collection Journal of Health Economics Health of Fails,” Journal Theory Welfare Economics Health - All?’ of Fairest no. 2011): 4(July 692; Rank of Means by Financing Health Social Science & Medicine liberties since it gives individual an Stecklovclaimand to entitlement Theory of Justice” of does measuredinequality”. highest degree health ill inequality not show the of health occur highestdegree distributions, the measured with distribution can thatthe it (s for “invar Ourti being Van and Erreygers centrationcon indices, however, have but health in concentration curve can b person’s taking by of opportunity equality the on John theory Roemer’s class”through income forBy le controlling “economic across distribution the population in the socioeconomic “sensitive to changes of are dimension of standards (living throug health socioeconomic the group), control for of of concepts uch as in the Gini index) and a “mirror a property” and index) Gini asthe in uch

basic liberties Bommier Stecklov and Rawls, Rawls, Guido Erreygers, Ph 73 72 71 70 69

“ Bommier and Stecklov, “Defining Health Inequality,” 505. Inequality,” Health “Defining Stecklov, and Bommier Steckl Guy and Bommier Antoine and Care Health in Health, Inequality Socioeconomic “Measuring Ourti, Tom Van and Erreygers Guido Roemer, Adam Wagstaff, Pierella Paci, and Eddyvan Doorslaer, “OnMeasurement the of Inequalities i circumstances

health and health

they alsocontrolthey A Theory of Justice Theory A 31, no. 1 (January 2012): 9. 31, no. 1(January Journal of of Journal Health,” of Inequality Socioeconomic of Measurement the in Sensitivity Distributional

basic liberties , Equality of Opportunity

but

. H 33, no. 5 (1991): no.556. 33, that

rather is

equity access to proper healthcare could be considered an

” ilip Clarke, and Tom Van Ourti, “‘Mirror, Mirror, on the Wall, Who in This Land Is Land This in Who Wall, the on Mirror, “‘Mirror, Ourti, Van Tom and Clarke, ilip first principle of justice - e considered the most effective. N

, 53. his or her income , even thoughhe even ,

focused on claim that concentration indices are -dependent Indices: A Economics Recipe for Good Health of Practice,” Journal

for the endogenous factor of endogenous the for

and to theand , 1998, 43. ,

the libertythe to function equally

ov, “Defining Health Inequality: Why Rawls Succeeds Where Social

been criticized by Erreygers, Clarke & Van Ourti and

21, no. 3 (May 2002): 512;21, no. 3(May

political property rightspolitical and iant to proportional changes” as changes” to proportional iant two

did notdid count

. 20 principles 70 Hence, concentration indices and the related

states that eachstates that person mu vel, concentration indices are related to

of just

health - an individual’s an

ot only do they portray inequalities portray inequalities dothey ot only “when comparing two different two comparing “when i ce

outcomes

with other with

to an extentto an expressed “A John in Rawls’

closely related to W . 72 Nevertheless,

income. The standard income. they

as entitlement tobasic entitlement 71 s .

part of st lack aratio They claim

into account a into account have an equalan have h income) and and h income)

groups”. his theory theory his Bommier Bommier n Health,” n Health,” - HO

scale

30, that ’s 69

CEU eTD Collection Chicago Press, 2009), 9 2009), Press, Chicago the concept of “strong meritocracy” wher (politicalon their gender labor empowerment) participation participation, market and related to White’s measured as outcomes: female of ratio attainment . participation opportunitymany opportunity socially constructed “gender donot measure which givens’’.rather biological than to given to biological meaning social the is Gender sex. different biological quite from something feminists,many means word is used by inequality” 1.4 their version of the However, t different scholarships: studies gender inequality) and (gender psychology (subjective inequality). indices are Gender Inequality Gender The next sets of clusters will be more diverse their in nature and more related to two Gender inequali Gender 74 stated should be itFirst of all

Mariann the most appropriate choice one most the inequality. choice when wishes appropriate to health measure

. he thesishe continue will focused toonthe remain

, measuring, Here and

However, most of itterms themmeasure in of outcomes such as educational Beyond Economic Man: Feminist Theory and Economics and Theory Feminist Man: A.e Ferber and Julie Economic A. Nelson, Beyond , the , life expectancy

- idea of a of idea related issues such as

– concentration index 10.

thesis the adopt will

differences between men and women

strictly differences between

indicators

“weak meritocracy” where people shoulddiscriminated not be based s ”.

. Even concepts such as “political participation” are 74 This is case the with majority the of gender indicesinequality

can be generally considered as

differences between the sexes; vs. male parliamentary members. what is meant

fulfills

empowerment

definition used by e both shoulde women equal starting and men have

21 Rawls’

prerequisites in the present thesis the in biological sexes but biological , political participation topic of topic measurement.

(group inequality) based Fe r ber and Nelsonber and :

and

it refers to s to refers it part

this i this

Some of these areas are

term the by s disparities

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and laborand ma

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ender, as theender, (University of of (University ) in terms of of terms in

equality

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CEU eTD Collection Parr and A. K. Shiva Kumar (New Delhi:, 2003), 2. 2003), Delhi:, (New Kumar A.K. Shiva and Fukuda-Parr Me Concepts, Development: Human in Readings in Measurement,” the existence of 1.5 ofand inequality perception fairness. has to of founddevelopment world. largesthindrances the one the in to be inequality been developers as an The into inclusion well indicator inequality ofinequality. gender Gini coefficient with th are issues These effortssacrifices and made by each, and (2) the rewards and benefits respectively enjoyed”. ( of viewpoint subjective a analysis, g resources in terms of educational attainment and health (life expectancy). latter would aim to capture whether citizens c the inequality asmeasurement opposed Edition (UNDP, 2010). (UNDP, Edition weighted for gender inequality)

Subjective case of the Subjective or p Anand 77 76 75 clusterThe next of indicesinequality” “subjective focuses issue onthe society’s of a

Human Development Report 2010: The Real Wea Real The 2010: Report Development Human and Theories Development: Human in Inequality “Gender Sen, Amartya and Anand Sudhir White,

erend inequality indices can, however can be ’

nd educational gender inequality gender concern

and Sen have formulated that well , former Inequality Equality

generally measured with the same means as economic inequality, using either the

measured questionnaires with both inequality

, 56 of existing gender disparities. This is extremely important as gen

erceived inequality is the measure wants to know the citizen the Atkinson the like or much index, curve e Lorenz – 60.

inequality

. in asociety measure

have to take into account have

they me they Moreover, . s

that aims tocapture “ .

defined This is hence is This onsider or not. meritocratic their society lth of Nations: Pathways to Human Development Human to Pathways of Nations: lth 22 , overlap with the clusters of economic, health, overlap, clusters the economic, with of -

being indicesbeing which asures and Policiesasures and for Development a Paradigm here as individual’s an subjectiv in termsin of

gender disparities termsgender in of “(1) the

asure s a subjective means of inequality ’ perception’ of while inequality the objective

outcomes and opportunities. In

these issues - wish gender to be being indices expresses the ” inequal” 75

In terms of asectoral the case of

, 20th Anniversary Anniversary , 20th only fromonly the ity. , ed. Sakiko Sakiko , ed. e on opinion

Subjective economic - sensitive 77

der der 76

CEU eTD Collection Sociologie Du Travail Du Sociologie Organization & Behavior Economic of Journal Match,” Do Not Reality Different? Americans market for redistribution the demand government correcting a for more while satisfied their lives, with their society is the result of acomparably fair market process makesthem considerably more Survey, Value using World concludedthat the Gehring, Kai and Fischer, Schnellenbach, Jan A.V. Dreher,Justina Axel Bjørnskov, Christian whether people are actually able to estimate the existence of social mobility orof levelness the however, toharder capture. could be an even more multifaceted indicator of well Surve Barometer States General United Surveyquestionnaires the from were used for outcome respondents MacC determined answer that was consistent with their current social status inequality Ame affected by inequality, a “complete lack of any effect of inequality on the happiness of the rican poor rican ulloch - The measurement of subjective I 81 80 79 78 income distributionincome is nega nequality

Bellat and Annick Kieffer, “Objective/subjective: The Two Facets of Social Mobility,” Mobility,” of Social Facets The Two “Objective/subjective: Marie Annick Kieffer, and Duru-Bellat Economic and Mobility Social Perceived When Happiness: and “Inequality al., et Bjørnskov Christian 6. Ibid., Inequality and Happiness: Robert MacCulloch, and Are Europeans Alberto Alesina, DiTella, andRafael

differently (subjective inequality) can be been

which influences the fact theywhether consider it fair or not found either exceedingly underestimated , Scholarly Articles (Harvard Unive (Harvard Articles , Scholarly

”

50 (2008): e7. 50 (2008):

without criticism y seriesy countries. for European

was is not perceived everywhere

in their on to their father’s in relation to their . They .

f ound.

determined 2004 comparative study that 78 In order to . tively associated with happiness”.

that

study conducted in 2008 showed 2008 in study conducted actual inequality

to a considerableto a

rsity Department of Economics, 2004), 19. 19. 2004), Economics, of Department rsity while measure happiness and

in the same way. People’s of opinion

“the respondents’ belief that income inequality in 23 osition and only half of half only and position social mobility.

(22%) the 79

of opportunity Furthermore,

happiness of (March 2013): 36. (March - being

or overestimated people in Europe people Europe in US the and

than other types of inequality and other than types of inequality

extent culturally or historically 81 This can put under question This put underquestion can

, on the other onthe , hand, a recent study, conducted

Europeans 80

Thus, subjective inequality carry out saidstudy, the

the respondents the .

Di Tella, Alesina and (28%) US

that that

was data

their

opinion pollopinion very inequality

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Alkire Designing and Foster, the Ineq 2012 Legatum Prosperity Index Methodology and Technical Appendix Geurt Van , off First Ricardo Hausmann,Ricardo LauraTyson, Saadia Zahidi, D. and The Gender Gap Report 2012 Welfare Economic ofSustainable the Index Support to Foundation “A Theoretical Lawn, A. Philip GII Technical Note 1HDR 2007/2008, Human Development Report (UNDP, 2008 2007); 83 Géraldine Thiry, Beyond GDP : Thiry, Géraldine Conceptual Grounds of Quantication ; the Case of the Index of la

World Happiness Index: Why? How? What Results? (June 2010). 2010). (June Results? What How? Why? Index: Happiness World - - Neuve : UCL, 2011), http://hdl.handle.net/2078/96960; -

Being (IEWB) , Discussion Paper / UCL, Département Des Sciences Economiques ; 2011,48

- - accomplish in practice. of The majority

de Kerk and Arthur R. Manuel, Kerk “AComprehensivede Index and for aSustainable Society: SSI The this chapter should note the note should chapter this 118; - inequality: Economic + - + + + - + +

- - - + ------inequality Educational indicator

uality -happiness s in Human Well Human in : -

Adjusted Human Development Index (IHDI)

disparity between what the indices aim to achieve 26

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well . Accessed: 4.05.2013;. Accessed: – 3 (June 15, 2008): 228 - -

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(London: The Legatum Institute, Institute, Legatum The (London:

selected for this thesis

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CEU eTD Collection Forum, 20 National Conference onSustainabl Conference National 2003): 105– den Bergh, “Abolishing GDP” (2007). GDP” “Abolishing Bergh, den Genuine ProgressIndicator (GPI), and Other Related Indexes,” 109. Indexes,” Related Other and (GPI), Indicator Progress Genuine (ISEW), their measurement economic measures,” beyond for incomeaccount inequality trendsnot truly capturing economic in well states the belief vein SSI are that the ISEW Progress underpinnings of(Genuine Indicator) GPI the and theoretical the about writing when such asHDI the theoretica reports and means such as index is meant to move “beyond GDP”. “beyond isto move meant index lackingbe in many indices was the fact that of averageinadequacy measures of human development (such as GDP capita per into account the not take distribution of well

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completely

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(Index of Economic Well

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94 Society.” Sustainable a for Index Comprehensive “A Manuel, and Kerk de Van 93 92 91 The However, to include economic inequality to include economic inequality through G the

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CEU eTD Collection Application in Policy Settings Amartya Sen and Haq ul Mahbub “capabilities family of indices approach” but appreciated highly likewise same person will witness greater betterment of their well would decrease (higher income becomes less useful). expectancy, housing and life expectancy) life holdingother (for inputs all while constant example increases case) this in input (income one income received by the wealthy”. i use the of with computed (Index ofProgress Sustainable ISEW the EconomicWellIndicator) and given poverty greater significance than inequality. s opportunity need second John Rawls’ three a intensity time poverty Distribution“. (poverty intensity) variable with alarger weight of 0,75 make up thesub Inequality Income ncome inequality ncome incr The Nevertheless The IEW 99 98 97 96 95

Microeconomics for Business for Satya P. Das, Microeconomics Sustainable Development and Talberth, the GenuineJohn Progress Indicator: An Updated Methodology and Thiry, Ibid. Well Economic of Index “The Sharpe, and Osberg emental increase for awealth

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98 is different from the from different is The law of diminishing The law returnsuse the of when states that ince 2010 in 1990.Since 95 The aforementioned variable The aforementioned and y individualy would smaller a entail

Human Index Development (Sage Publications Pvt. Ltd, 2007), 185. 2007), Ltd, Pvt. Publications (Sage , after a certain degree, its marginal physical product

(such as Poverty Index) Human the

than than for inequality income - being), however, being), 30 97

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CEU eTD Collection California Santa at Cruz (2005): 5– Journalof Human DevelopmentCapabilities and Mexico,” to Application an and Methodology Development: Income (GNI) per capita. (GNI) per Income that indices being 1% of households owned of 35.4% privately heldall wealth. States inequality can onother inequalities,data worth net it, does not represent even though income inequality data for the Gini index is generally more easily accessible personricher inequality. should income contributeto greater person should contribute TransferDalton which Principle states thata transfer of income from richer a person poorer to a inequality. Globeco the HappinessWorld opted have Index for of useincome the ofex ind Gini the “functionings” and “capabilities” “ schooling aggregate measure of three dimensions: “ household income percapitahousehold income or adjusted for inequality by foradjusted deducting inequality life expectancy at birth

makes use of ,

where in 2009 the top 1% of income earners 17.2% received of incomesall but top the The Progress creators of Index of EconomicWell Genuine the Indicator,the 103 102 101 100 The is IHDI 25.

Sociology Dept., Univers Dept., Power,”Sociology and Income, Wealth, America: “Who Rules Domhoff, G. William

Dalton, “The Measurement of the Inequality of Incomes.” of Inequality the of Measurement “The Dalton, opment Devel Human to Pathways of Nations: Wealth Real The 2010: Report Development Human James Foster, Luis Lopez and expected years of schooling, “health” which is accounted for with is accounted “health”which yearsschooling, of expected and

As As have

be stated before

measured economic inequality in (wealth). terms worth of net , accessed May 3, 2013, http://www2.ucsc.edu/whorulesamerica/power/wealth.html. much much between than higher incomes. This be can exemplified by United the

the Atkinsonthe ’s

based on the methodology proposed Foster, by methodology onthe based ”

to greater income equalitywhile a transfer from a poorer person to a , and and , “standard of living” which is measured with Gross National 100 These dimensions in the Theoretical Framework Calva, and Miguel Szekely, “Me Szekely, Miguel and -Calva,

household which could be be could compared which between countries

measure of inequality.

its

average e consumption percapitaimputed ducation” is measured which through 31

are meantare to

value accordingto asuring the Distribution of Human Human of Distribution the asuring

103 102 , this measuresatisfies thePigou

101 In the case of, IHDI constitute a constitute So far So none of observed the well

However, as

disparities in overallwealth its level of

Lopez

as a note of criticism, combination of Sen’s of Sen’s combination on an asseton an index - .

Calva and Szekely Calva and

, 15. inequality mean the indicator the

6, no. 1 1 no. 6, - disposa being and and being

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CEU eTD Collection average w playing countries. measurement of educational inequality would matter alot for average the cas loweradjusted significantly when be could measurement of well 2.2 such as education and inequality. being health populations, in being income. However, as economic inequality is the with of coefficient Gini inequality for toeconomic chosen account have most indices the of could never happen in the case of educational attainment and life expectancy. in ofis country income the accumulated a that all to such as upperbound natural a have incomeinequality, weights. country hich access should be equalized. accesshich should be Educational Inequality: IHDI Inequality: Educational - e of e

The of inclusion educa 108 107 106 105 104 From atheoretical perspective . field principle”

amounted to 50%amounted 104 noted Foster Foster

Human Development Report 2010: The Real Wealth of Na Wealth Real The 2010: Report Development Human Roemer, Developm Human to Pathways of Nations: Wealth Real The 2010: Report Development Human 24. Ibid., Lopez Foster, However, at the same time the three main

and South Asia in developed et al

Equality of Opportunity

is .

i usually report that in the case of the three HDI dimensions the IHDI for adjusts HDIthree the dimensions of the case the thatin report - Calva, and Szekely, “Measuring the Distribution of Human Development,” 23. Development,” of Human Distribution the “Measuring Szekely, and -Calva, n the next sub next n the - being. where education i

the most affected by a correction as it is the only one thatdoes not one only the as it correction is mosta the by affected 57%

the A countries and largest the developing in countries. tion

previous study on has Mexico s

Arab States

of al , 1998, 6. ,

108

in the case ofhealthand education inequality inequality be most the can considered important step i chapters we will move to the non their , education plays an important role in Roemer’s “level important Roemer’s in role an education, plays

In this model, education is not only an instrument for instrument is an not only for education In model, this s an s an

original

for inequality. not sufficient to control for the distribution of well

where losses due to education inequality have losses inequality where to education due important inputorder in to facilitatea life good to 32

HDI tions: Pathways to Human Development Human to Pathways tions: dimensions

inequality of inequality this personone while sort levels 106 The same has proven to be true in true to in be The has same proven . The smallest losses have been on

own that outcomeshown education of the HDI the kept are of with equal rankings made for rankings made - economic clusters of well -

it is technically possible 105 ent As we can see, , 218. , 88. 107

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developing

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The IHDIsteps three in is measured Ibid. Human Development Report 2010: The Real Wealth of Nations: to Pathways Hum Sen, 61. Ibid., Sen’s “capability approach”

by the thesis the by

education one well

Inequality Reexamined Inequality

IHDI educational attainment “ years of schooling of years schooling perperson)schooling

- for equal being index, Inequality the

outcomes to measure to is distinctive in the sense that it by to i

but at the same time not precise enough as not enough precise time same but the at

how much. how societies in the world, sta all nequality , 39 –

41. with only well

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” - - as educational attainment could be considered related losses

being and and

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being beyond in terms of income of terms in being beyond - first of all of first esteem by allowing t and positionsociety. and a in - Adjusted Development Human was Index, . 112 In the case of perfect equality the HDI

tes witness a loss in loss a witness tes In line with the standard HDI, IHDI HDI, IHDI standard the with In line , inequality of inequality ,

measures educational inequality ”, then consumption”, ,

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being index that index being

education inequality,education (Table 2)

data Now we will to the move we Now issue It inequality. of health 116 115 114 113 d

(1997): 1289.

well Abdelbaki, “An Analysis of Income Inequality and Education Inequality in Bahrain.” Inequality Education and Inequality of Income Analysis “An Abdelbaki, Human Development Report 201 Inequality “The Douglas Hicks, Roemer,

is derived

- for the for being . 115 Equality of Opportunity However

(the variable “life expectancy from birth”)to inequality. losses due for Roemer wishes that educational resources should be invested so resources “regardless of should invested be educational Roemer wishes that outcome and opportunities and outcome

included .

ir differential abilities but Hicks that notes disparities significant the life exist in

from UNDESA (2009d)from UNDESA provides which distribution a includes

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s was

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health inequalityhealth 0: The Real Wealth of Nations: Pathways to Human Development Human to Pathways of Nations: Wealth Real The 0: , 2000, 60. ,

it contradicts Roemer’s contradicts it adjusted Human Development Index: A Constructive Proposal,” Proposal,” Constructive A Index: Development Human -adjusted the case

it takes the health d choice to study fewer years,individual that an chance the

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34 since a good and healthy life is both an integral integral an is life both healthy and good a since not

into itsinto measurement

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idea

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t . hat peoplehat should equally be 113 inequality IHDI

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114 116 World World either The The The

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in other in health ine health 120 119 118 117 to IHDI the According in Health inequality along with educational inequality can be considered as the most vital as the considered inequality be can along educational with inequality Health onal issues onal

Ibid., 218. Kevin Watkins, Human Development Report 2005: Watkins, Kevin International Cooperation Crossroads: a at Trade Aid, and Lopez Foster, 88. Ibid., the

HDI - in a country a in

economic inequality as they take in quality: W

HDI

rld . HDI outcomes of life expectancy were to decrease by 0.7%

119 dimensions Calva, and Szekely, “Measuring the Distribution of Human Development,” 25. Development,” of Human Distribution the “Measuring Szekely, and -Calva, , Human Development Report (New York, New York: UNDP, 2005), 6, 337. 6, 2005), UNDP, York: New York, (New Report Development Human ,

However, Moreover, health education and two are of main the components of well health dimension.

across age intervals (0 hen health inequality was taken into account, a was inequality into account, health taken hen , with the with

which is for example not the case with income (which can have a , GII, SSI GII, ,

(income and education) and (income inequality related 2010, help of help

heal - Sub 118

As can be seen in Table 2, countries can suffer under A Atkinson th has a Saharan Africa witnessed

35 study IHDI measuring the in 1, 1 –1,

losses

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index ,

as an indicator as an

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the

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Ibid., 90. Ibid., 92. Ibid., Development Human to Pathways of Nations: Wealth Real The 2010: Report Development Human The Gender Report Gap Zahidi, 2012 and Tyson, Hausmann, orbut alsolab market participation rates. The include does the for GGG, example, considered considered

have been established: have GGG hree inequality has been inequality

indices, , ,

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121 borrowed to be a part of the SSI’s sub part of SSI’s a the - borrowed to be

due to gender inequality. to gender due - 2010 release of the Index

indicators: “maternal mortality”, “adolescent fertility”, the the

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36 sub of measuring gender inequality as part of ) -

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mpowerment, education and health education and mpowerment, GGG and the GII (the SSI uses the the uses SSI (the GII the GGG and “ annually

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123 the GII the (GenderInequality 124 y education and above)” and above)” education and y - The third index is SSI the index The third

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Jan Delhey and Ulrich Kohler, “Is HappinessInequality Immune to Income Inequality? NewEvidence 129 128 127 126 125 found no The present thesis, however, ll dimensions.ll

For well For Ibid. Human The Gender Report Gap Zahidi, 2012 and Tyson, Hausmann, Abdallah, S., Michaelson, J., Shah, S., Stoll, L., & Marks, N. N. Marks, & L., Stoll, S., Shah, J., Michaelson, S., Abdallah, of o of one of strongest one the ,

which only accounts for “experienced well

utcome Development Report 2010: The Real Wealth of Nations: Pathways to Human Development Human to Pathways of Nations: Wealth Real The 2010: Report Development -effect being indices that incorporate average subje average incorporate that indices -being being.

-corrected Standard Deviations,” Social Science Research

London: New Economics Foundation (NEF). 2012; 2012; (NEF). Foundation Economics New London: 126 that it captures possible overlap between the dimensions the itbetween capturespossible overlap that

life expectancy at birth and ecological footprintcapita per ), should fall ) and The GII is GII The as part of their measurement. - being but do not adjust it for perceived inequality such inequality asHappy the for but donot perceived adjustbeing it

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perks of the perks of

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. GII 37 trace of

As such, when one wishes to get abetter idea ctive life satisfaction, see NEF

well - being” (subjectivebeing” well - , 5. ze ze notwhich onlyare known for high 128 The happy planetThe happy index: 2012 report:A global - being indices thatinclude indices being

- Well female professional and technical

40, no. 3 (May 2011): 749. 40, no. 3(May being indices thatmeasure

but opportunity the is 129

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CEU eTD Collection judged only by “attributes relevant for the performance of the duties of the position”. the of duties the of “attributes performance by the only forjudged relevant where people are given equal chances since theof a possible occupancy which perhaps ignoredbe as part of objective well Theoretical Framework, it is possibly not themostpractical way l distributionsconsider possible unequal of weal favoritismas opposed to meritocra 30.04.2013Accessed: measuring “ questionnaire socishow a likely to say that“people thisin get country ahead workingby hard”. countries gets hard variable the includes opportunity”, dimension, “entrepreneurship and determined “entrepreneurship a and “governance”, “education”, “health”, “safety and security”, “personal freedom”, “social capital” to measure well is Prosperity Legatum the which Index is 2008): 35.

consists of “non the - T The only observed wellThe only 134 133 132 131 130

his survey can be related to Ro

you the citizens of Germany were the most likely and the citizens of Romania were least A Unique Inquiry into Wealth and Wellbeing:The 2012 Legatum Prosperity Index Mick Roemer, -believe http://www.gallup.com/poll/153224/europeans World. Gallup 39. Ibid.,

whether individualswhether consider the playi

- ety’s

to be importantto be for well whether citizens believe that it is possible in their country to get ahead by hard work

ahead” O’Leary, “Prosperity Index Defines National Weil in ahead you get hard does working -

being/prosperity among relative inequality but its

Equality of Opportunity

which is meant nd opportunity” . 132 For exa For discrimination principle” and the and “level discrimination principle” - being index to take into account , 1998, 1. , mple,

to determine to determine to opportunityaccess - being outcomes being

eight equally weighted which

emer

produce Gallup Wor Gallup leve - being indices being th theirfair in country or not ’s conceptualization of ’s conceptualization l of perceived fairness 38

consist of several sub several of consist ng to level/nondiscriminatorywhich field and d Institute the by Legatum this country?” satisfies this country?” ld reports 2011 that in Being,” -Being,” .

by regression analysis Information Today

dimensions such as “economy”, any type of ooking at inequality and should and inequality at ooking - . the -ahead 133

- , 34 It “ indicators “perception that working “perception thatworking , however, does not however, , This equality of opportunity

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field principle”, that have been . 131 The latter .

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-believe http://www.gallup.com/poll/153224/europeans World. Gallup and not by some external factors some notsuch by external as nepotism and

job rewards job

in their countries are their countries in 39 - being donot indices control for inequality.

. based on based 135

-ahead

a person’s actual work -hard -work.aspx . -

CEU eTD Collection all of them aim to go beyond a purely economic definition of of definition economic purely a beyond to go them aim of indices, all of methodologies these and Happiness IndicatorWorld (Globeco’sWHI). Well of Economic as the GPI nine) HPI’s average m the case of the Happy Planet Index This happens expectancy of 35 years while alarge size of the population does not have access to secondary education 10% and lower the times than longer class the state of world well matter whether universally applicable not distribution- Satisfaction with Life Index that Index, Development standard Human indicesgroup includes such as the Happy Planet Index, - well sustainable To Positive Psychology.” Positive To

, constitutes only list to be known are however, focus mainly on economic well focus mainly oneconomic however, Secondly, theSecondly, Three 136 Abdallah, S., Michaelson, J., Shah, S., Stoll, L., & Marks, N. N. Marks, & L., Stoll, S., Shah, J., Michaelson, S., Abdallah, Kuik, Kuik,

“OECD Better Life Index.” easures such as

being. (Genuine Progress(Genuine Indicator) Sustainable National (SNI) Income

because main

London: New Economics Foundation (NEF). 2012; 2012; (NEF). Foundation Economics New London: as sensitive

- outcome

being) points have become clear in the previous chapters

10% of whole the population

well that majo - , could still rank qu being. For hypothetically case the instance, in of . , 136

GDP the extremely unequal ( being indices being index rity of the well If do indices the not account for s or opportunitiess or

ISEW

per capita

accounts ; Chapter 3 3 Chapter include sub -

(HPI) (Index of Sustainable Economic Well (Index of Sustainable being: A Challenge Challenge A Well-being: of Subjective Projection “AGlobal ; White, gains

do not ,

or HDI for the . Its . ite high in ite the - being indices measurewhich inequality

better

, the mean of a sub of a - mean the indicators which are based on an average and

SSI

as shown in chapter Chapteras 2 shown chapter in – then they are bound to miss the larger picture of of picture larger the miss boundto are they then 40

ranking of countries ranking - A account for account Su

being Discussion s has been referenced before from the reports ,

stainable National Income (Sustainable Society Index) but many of highest the but many countries in ranking

but access to higher levels of tertiary education

of of ranking country the (

see Table possesses 60% of all th all of 60% possesses The happy planetThe happy index: 2012 report:A global index of

within country within

the any type of

indicator ) OECD Better Life Index, the . This

does completely differ fromdoes completely . Firstly,

list

a countrya distributional issues .

- This can be noticed in noticed This be can

being) Globeco’s and includes indices such indices includes inequality ) . , a well

e wealth a the

large

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CEU eTD Collection This demonstrates inequalityeconomic of well Gender Development Index Development Gender a lot of data exists etal Anand by 1991 by Adam Wagstaff, Pierella Paci and Eddy van Doorslaer indices countries. developing of work force by educational level Abdelbaki released an article on educational inequality in Bahrain with the variable “d service of the case as many studies have already produced well play as shown by Neil Craig either a onhealth of effect the incomeabout inequality outcomes longitudinal to adue lack of data oninequalities in non- World Bank. World data gathering has grown .” Indicators and Methods Health: in Disparities “Measuring Public Health Public Health,” 2486. Health,” - being

140 139 138 137 newer among For that studies example, be oneducationcould inequality used the in Davidson R. G R. Davidson eralisability of the Association Between Income Inequality and Self and Inequality Income Between Association of the eralisability Gen the “Exploring Craig, Leigh, Jencks, and Smeeding, “Health and Economic Inequality,” 6; ( see Table non-

(Oxford University Press, 2009) (OxfordUniversity Press, al. et Detels Roger , ed. Just Health: Meeting Health Needs Fairly Needs Health Meeting Health: Just Norman Daniels, 679. in Bahrain,” Inequality Education and Inequality of Income Analysis “An Abdelbaki, 1950 World, the in Inequality “Educational Kamal, and Hanchane, Benaabdelaali, Wagstaff, Paci, and van Doorslaer, “On the Measurement of Inequalities in Health”; Anand et al., al., et Anand inHealth”; Inequalities of Measurement the “On Doorslaer, van and Paci, Wagstaff, (such as GDP) as (such

modern well 139 linear relationship dataset . in 2001. Guidelines for the measuremen ) that there still is still there that , although, it plays an important although,for, role an it plays

on it on watkin, “12.4 Reducing Health Inequalities in Developing Countries,” in in Countries,” Developing in Inequalities Health Reducing “12.4 watkin, 138 of of 140 Health inequality has alsobee Health inequality , e

The measurement of

- ducation inequalityducation for countries 146 economic inequality economic beyond but donot go by due toresearch being - ) being and have and being

leaps has also sparked interest in (GDI) prior to GII (GDI) priorto ,

as indice

room for improvement among well among roomimprovement for and bounds and Andrew Leigh demonstrated Andrew by ” ” which could measured be other in Middle s , Benaabdelaali, Hanchane and Kamal developed

done by done not switched to me economic dimensions but this has robust

41 g thanks to the work done by thanks todone work the t of healtht of inequality were ality inequ ender has become commo more .

UNDP UNDP As can be seen, indices primarily measure methods, n , 1st ed. (Cambridge University Press, 2007), 97; 97; 2007), Press, University (Cambridge ed. , 1st ; to alarge extent

the measurement of

the

for the of creation (income (income

well measures and aand more comprehensive study asuring non-

from 195 from -

being . One could claim that this that could claim One . or other factors be could at and health haveand inequality - being indices.

or i or

neglected by inequality inequality by neglected of

economic inequality.economic published already in in published already

a country 0 the UNDP and UNDP the -2010.” ndicators

- health inequality health

2010.

to be be not to proven Oxford Textbook of of Textbook Oxford GII the

assessed -assessed

- 137 Eastern or . for it. for istribution

In 2012 Research and the the and and n

the

– a

CEU eTD Collection fact that the most accurate repr sensitivity points: main three previous the in provided chapter well insight into global 3.1 of inequality IHDI is apure measure of well outcomesthough inequality to could a certain inequality income lower HDI levels,stronger thisrelationship is with The IHDI, for example, estimates that inequality. of corresponding to level the according modified HDI were existing the dimensions other indic IHDI was also the only well Humanof traditional the IndexDevelopment for inequality of health incomes, education. and Inequality the been inequalities. should (GII) i was index A Proposal Proposal A 1) Thirdly, most the comprehensive index among the that indices account for has inequality 142 141 future for well proposal a This make will thesis apply the same methodology where

most contemporary well

. Human Development Report 2010: The Real Wealth of Nations: Pathways to Human Development Human to Pathways of Nations: Wealth Real The 2010: Report Development Human Inequality “The Hicks, In to addition

es chose to ignore it. Inequality was not added as a separate indicator separate as a not was added intobut IHDI es it.Inequality to chose ignore Firstly, a

opport f or Future or ntroduced .

142 - unity s man Development (IHDI)Adjusted Human Index adjusts which

This provides has been discussedhas been previously thesis, the in income may inequality not be esentation of the inequality of well ofesentation inequality the - being GDP thatis per beyond measured capita. economic inequality .

Moreover, IHDI does not

Well for that. for adjusted Human Develo Human -adjusted - being index thatbeing index measured and health educational inequality while - - being Indices being being indicesbeing reject purely economic means sign as a of human s - , a contemporary, a well being outcomes

anothe

Any future indices Any

while high while high country within r reason to measure non-

, future , average indicators should adjusted be for possible 42 extent the estimate inequality of opportunity,

pment Index: A Constructive Proposal.” Constructive A Index: pment ,

disparities in

well weight for gender inequality since as -

being indices which wish to give agreater it -

being

- that aim to measure human well - being index s does not take intontdoes potential not take accou being, especially, if one considers the

indices

education and hea and education inequalities economic

should Further to arguments the hould take into account take hould

are adopt distributionadopt -

inequality

the dimensions dimensions the correlated with , 58.

lth than with with lth than

a separate .

- being Even

t he he 141

CEU eTD Collection better outlookonwell a correlated with, say, access to opportunities work andmortality” maternal “dimensionsdeprivations”: complementary are and thatinequality schooling in tends to be analysis, the individuals endure multiple inequalities This gender and inequalitieshealth being. well non- a West separately, Shanghai province in China would be on the same HDI level as Greece, while some noticeably changethe rankings/outcomes of inequality Thirdly population. across the education and as health such various dimensions insight this into whether is true or not. ofmeasurement non- debate by claiming well disparity has increased, this has not affected people’s s inequalities sucheconomic as happiness inequality (July 14, 2009).(July 271.

- - being indices being. - issue is Chinese provinces would rank on the same level as African countries as African level same onthe rank provinceswould Chinese

e 2 146 145 144 143 conomic )

Will Wilkinson, “Thinking Clearly About Economic Inequality,” Cato Institute: Inequality,” About Policy Economic Analysis Clearly “Thinking Will Wilkinson, Ibid. Development Human to Pathways of Nations: Wealth Real The 2010: Report Development Human Report2006 Human Development The index shouldThe index

Secondly,

GII for i instance

called association

well .

that while income inequality is All wellAll - - being distribution economic inequality well into global authors ir Human 2006 the rankings: Development Report that noted - being. being indicesbeing should acknowledgenon- be associationbe -

s association .

such Wilkinson as Will Something t Something - - sensitivity sensitive indices would capture distributional issues that could issuesthat could distributional capture sensitive would indices , Human Development Reports (New York and Oxford: UNDP, 2006), 2006), UNDP, Oxford: and York (New Reports Development Human , , and needs and , solved.to be the Among part indices of the should be

Indices into should take account distribution the of - ,

sensitive sensitive and he IHDI, he when 43

come

on the riseon the the in

an , have actually

which that means it is able to present “joint

for example, does not forfor example, account index

the mainthe theoretical foundationof future have confronteduality the ineq have income

verlap of possible education, capture overlap tandard oftandard living - being indices being

is able to demonstrate that same

decline

economic of inequality well , other, world non- developed d and while the income the d and while , they , . 146 . 144 . This would provide provide would This 143 The importance of The importance

By i By c ould give better give ould , 90. ncluding thencluding

no. No. 640 640 No. no.

yet , the the , taken . 145 -

CEU eTD Collection should c not be proposal as data does not exist for all countries yet countries. 80 in conducted far been this that has been a serious update and assistance is expecte for cohorts different population. of age a the most realistic approaches has been to rely on the means of the distribution of life expectancy most in inequality health not count”. missing in ma of injustices primary the in societies,consider the fact that data onindividual health outcomes is majority of countries limited. is,Peter however, and Evans in countries. inequalities multiple into health the has been regard creation of Gini ofeducation world outcomes a of many. the advantage used as justification for the the least advantaged. of justice principle second the at deprivation lower of distributiend the example, which (Oxford University 46. Press, 2001), Health

, ed. Timothy Evans, Margaret Whitehead, and Finn Diderichsen Diderichsen Finn and Whitehead, Margaret Evans, Timothy ed. , Action to Ethics From Action: to Ethics From : give a stronger weight to transfers at the lower of distribution end the . T 3) 152 151 150 149 148 147 Mos 4)

puts more weight of to distribution. transfers the center the at

Fabienne Peter and Timothy Evans, “Ethica Evans, Timothy and Peter Fabienne 1950 World, the in Inequality “Educational Kamal, and Hanchane, Benaabdelaali, Rawls, 256. Inequality,” of Measurement the “On Atkinson, WHO: WHO: ter, Fos and Alkire The index shThe ould index 150 Moreover, ny countriesny of injustice indicator as another in general worlda where t importantly ollected forollected use A Theory of of Justice Theory A World Health Survey. http://www.who.int/healthinfo/survey/en/ 148 This is based on Rawls’ notion that the adversity of a few would not be not be would few of adversity thatthe a notion is This onRawls’ based

Designing the Inequality at the moment, child mortality data which ha data mortality moment,child the at parts : social inequalities must ,

make th , 266.

in future in well

Success in this indexe to needs this based be in on strong a set of data. Success ntries cou for developing all not exist does world, the of

use

151 the - d to come fromd to come WHO the As can be Asdata can seen, onhealth is inequality need in of Adjusted Human Development Index (IHDI)

- attributes of attributes being indices.being on, Challenging Inequities in in Inequities in Challenging Equity,” Health of l Dimensions 44 149

which

Data on individual health health outcomes the in onindividual Data

be arranged so that they are greatest benefit of . Nevertheless, that does not mean that it 152

main the be could This

Atkinson who regard

in accordancein with part (a)of Rawls’

family of and studiesand looked thathave health inequality inequality health - led World Health Survey Health World led 147 . Accessed: 12.05.13. Accessed: s

This would been , 26.

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used to measure used to measure limitation of this of this limitation

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CEU eTD Collection Nations Developme Nations United (HDRO), Office t Report Developmen (Human present) to (2009 Papers Research Development Human Database and 157 welfare theory or of economic type should of matter irrespective uses.which inequality index Thus,being well on human der gen and have education various in health, dimensionsa detrimentalinequalities such as effect empirical s arguments against equality and egalitarianism should averted be as much as possible. 3.2 Nations of inequality Indicator Cluster Surveys, the “ doe effects on thesocio Material Standards?,” BMJ Standards?,” Material 530– Development Economics Research, Inc, 199 years of schooling” and “income inequalit “income and ofyears schooling”

Costa EU Statistics onIncome Statistics EU s not Limitations of the the of Limitations 539; Font and Hernández and -Font First First too challenging. The situation is not, however, 156 155 154 153 The Review of Economics and Statistics and of Economics Review The Crime,” and “Inequality Kelly, Morgan William Easterly, “Inequa Easterly, William mic mic Econo of Bureau (National Robert J. Paper Barro, Inequality, andWorking Growth, Investment NBER , ’

Population Division. Population

R. G Wilkinson, “Socioeconomic Determinants of Health: of Determinants “Socioeconomic Wilkinson, G R. “Non Huemer, Michael Ibid. Jeni Klugman, Francisco Rodríguez, and Hyung however, always correlate with disparities in terms health tudies have alsoshown that tudies have

of all, the proposal is based on the notion that inequality is harmful proposalto the societies isand notion onthe thatinequality based all, of the distr the

the well the World Bank’s International Income Distribution Database. Income International Bank’s World the 9) - being and, being should of be concern nt Programme (UNDP), 2011), 280 2011), (UNDP), nt Programme .

84, -

no. 2 (November 2007):no. 2(November 755– economic sphere ofdevelopment human economic

ibution of life expectancy can be taken 314, no. 7080 (February 22, 1997): 591– no.22, 1997):314, 7080(February - being index draws upon. being index proposal Quevedo, “Measuring Inequalities in Health,” 203. inHealth,” Inequalities “Measuring -Quevedo,

the and Living Conditions, Living and Journal of of Journal Instrument,” New a from Insights Underdevelopment: Cause Does lity - 154 Egalitarianism,” Egalitarianism,”

Measure DHS,

economic

As such As y” is y” Philosophical Studies 776

by authors such as Michael Huemer such as Michael authorsby 45

;

the UN University’s World Inequality Income

available from Study, LuxembourgIncome the available

The HDI 2010: New Controversies, Old Critiques Old Controversies, New 2010: HDI The Choi, -Jin not matter which type of well the definition type not matter which

the inequality is inequality ,

the proposalthe 591; United NationsFund Children’s Mul United Currently

Health Inequalities: Relative or Absolute or Absolute Relative Inequalities: Health

114, no. 114, .

156 from the from

known to have strong to have nega known Moreover, economic inequality

, inequality data inequality , for variables

– does not into take account

82, no. 4 (November 1,82, 2000): no. 4(November 2 (2003): 147– 2 (2003): . 157

database of the database This thesis finds that thesis This that finds 171. 153 Data on the the on Data .

155 However,

United United tiple tive , -

CEU eTD Collection health and education an opportunity education an and health issue ofunlessnsiders inequality the The outcome co of proposal one pertainsequalization the to been preference to to study. This due suspects thesis, however, effort the thatin of ofinequality, high case lack thatcertainargument individuals mightinfluence the of outcome the measure preferring by not the strongest drawback in rel effort be would to take able be hints foundthatwould of were measures this no for research thesis, the of As topart control for. challenging very of it effortis level as

stated the in previous chapter Thirdly, proposal the does into not take account Dworkin’s Secondly, would play would

the proposalthe does of opportunity into accountas (in)equality the not take a non a - existent role in the overall score. ation to educational (or health) inequality. One could make the make could One (or inequality. to educational ation health) ,

as as it it - areasonable is

considerably difficult to measure scale. ona global 46 point of

view.

concern of concern an individual’s - sensitive. This besensitive. would

has has

CEU eTD Collection T a transfer of income from a richer person to a poorer person should contributes to greater shouldpoorer contributes person person to richer transfer greater a toa a from of income distribution. portray for is best while index extremes, Gini the inequality Atkinson of measure inequality. inequal turned out thatmostindices the of distribution- indices. pointsdefinitions focal and in measure. intended the multitude a by of factors influenced measure “subjective inequality” were not considered to be very dependable as results the be can well on human most impor f well contemporary observation how clustersthe of (orga inequality intended outcomes. Subsequently, to capture inequality measuring opportunit outcomes and between focused debate onthe “educational inequality” “health inequality”, “gender inequality” and “subjective inequality”. The thesis argued ive he first chapter explained theoretical underpinnings behind inequality, the issue the inequality, underpinnings behind theoretical explained first chapter he

clusters ity. This

The thesis looked at thesis theThe way universal well The chapter second Firstly, it tant types of i of types tant

sensitive

Most of all, the GiniMost coefficient of the satisfies all, the Pigou of inequality of

- being most and be would affected changes inequality. by in Indicators which was

was revea a that led

, since they since , did mainly accomplished of mainly help the accomplished with

nequality that indices ought to measure as they have the strongest effect “health inequality” “health

were de (the empirical chapter) equality nized into sub - nized

The Atkinson measureuality of ineq is a better indicator of

- such cultural as and social preferences veloped

not take into inequalityaccount of well being that werethat .

It was Conclusion

significant

indices measure

: “economic inequality”, “educational inequality”, “educational inequality”, “economic : and “gendershould inequality” and

concluded that while the hasconcluded thatwhile literature onequality 47

distribution- chapters) which we -

being indices approach

focused on the currently in use in focused well currently onthe number

sensitive,

either the Gini the either or the coefficient inequality. i - es, most of the scholarship on scholarship on the of es, most states that states that which principle Dalton of well ing inequality across the whole across whole the inequality ing

the first chapter introduce chapter first the re based on the practical - measure being indices

Based literature onthe

outside the scope of outside of scope the distributional issues. - being. be d

s re only considered

Secondly, it lated tothe lated

economic were - being being

that not the the d

CEU eTD Collection within sensitivity control forkey and inequality of principles two justice. adhere health population for and inequality country. of whole the a education - association found comprehensive to most the which aims to capture the level of meritocracy in a society by method of survey. health”. “reproductive overlapping disparities between dimensions such as “empowerment”, “labor market” asconvincing it isfound- association methodologically to be the The other indices. by to(IHDI), measure indices unchallenged only feat a well in issues most important income equality. have been thehave most successful di distribution. This inequality, future well of measure Atkinson the Moreover, such different as between dimensionscaptured. overlap is andhealth education. This be would further strengthened by- association ts and international organizations to organizations governments national international and enable would inequality of distributional of non- and improving been whilethat, non- of most the disadvantaged. to toadvantage the be have stribution of population. the Strides made the by theUNDP and developing team of IHDI the G ender d Chapter threeChapter included 158 economic distributioneconomic . to Sen’s

Dalton, “The Measurement of the Inequality of Incomes.” of Inequality the of Measurement “The Dalton,

Global Gender Gap (GGG) among Gap which Gender (GII) Index theInequality Global and GII was econom 158

would be in line with Rawls’ second of justice Rawls’ principle with line in be would “capability approach”, Roemer’s “level

dex to control fordex in The only it is possible to develop now - to transfers at the lower end of end the lower the to transfers at weight more being should indices put

Subjective inequality was measured by the Legatum Prosperity Index ic w ic

The thesis argued that f that The argued thesis - ell

Common indices of indices Common well human in thisin respect being, being has suffered from a proposal for future well

was

the Inequalitythe

but othe 48

sensitive as index it a non

indices that are sensitive to e ducational and health and inequality ducational - r should indices also uture indices should adopt distributionadopt should- uture indices economic

a lack of data, the situation has, in fact,

- - The third chapter makes the argument Adjusted - being indices,being nomatter theywhether

the - playing sensitive: GII takes into account - being thataddress various forms

well Human Development Index Development Human

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ccounted for income, for income, ccounted

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note

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