Fair and unfair educational inequality in a developing country: the role of pupil’s effort Niaz ASADULLAH∗ Alain TRANNOY† Sandy TUBEUF‡ Gaston YALONETZKY§ September 3, 2018 Abstract Inequality of opportunity builds upon the distinction between fair inequality related to responsibility variables and unfair inequality related to circumstances. This distinc- tion is meaningful as long as responsibility variables are not fully determined by cir- cumstances. We attempt to check the magnitude of the correlation between child effort and family background when measuring inequalities of opportunity in education using a purposefully designed survey on secondary-school education in rural Bangladesh. The analysis comprises decomposition exercises of the predicted variance of school per- formance in mathematics and English by source and subgroup based on parametric estimates of educational production functions. Pupils’ effort, preferences, and talents contribute between a third and 40% of the total predicted variances in performance scores. The correlation between overall effort and circumstances does not matter much since the contribution of overall effort only falls by 10% when the correlation is taken into account. All in all, these results cast doubt on the common practice of reducing education to a circumstance when estimating inequality of opportunity in income at- tainment. Keywords: inequality of opportunity, education, effort, decomposition, school. JEL Classification: C01; I24; O12. ∗University of Malaya, Malaysia †Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS, France ‡Université Catholique de Louvain, Belgium - Corresponding author (
[email protected]) §University of Leeds, UK 1 1 Introduction The last few decades have witnessed the remarkable development of new quantitative methods for the measurement of inequality of opportunity in different social settings, in- cluding income attainment, health status and education (see Ferreira and Peragine, 2016, Roemer and Trannoy, 2015, Ramos and Van de Gaer, 2016, for reviews).