This paper offers an axiomatic characterization of two classes of poverty measures that are sensitive to inequality of opportunity -- one a strict subset of the other. The proposed indices are sensitive not only to income shortfalls from the poverty line, but also to differences in the...

Income differences arise from many sources. While some kinds of inequality, caused by effort differences, might be associated with faster economic growth, other kinds, arising from unequal opportunities for investment, might be detrimental to economic progress. This study uses two new metadata...

Widespread agreement that poverty is a multifaceted phenomenon encompassing deprivations in multiple dimensions clashes with the vociferous disagreement about how best to measure these deprivations. Drawing on the recent literature, this short paper reviews three methodological alternatives to...

The 2001/02 Argentine crisis had a profound impact on Uruguay's economy. Uruguay's gross domestic product shrank by 17.5 percent and the proportion of people living below the poverty line doubled in just two years. It took almost 10 years for the poverty rate to recover to its pre-crisis level....

This paper develops a micro-econometric method to account for differences across distributions of household income. Going beyond the determination of earnings in labor markets, we also estimate statistical models for occupational choice and for the conditional distributions of education,...

Building on earlier work by political philosophers, economists have recently sought to define a concept of equity that accommodates the fairness of reward to individual responsibility and effort, while allowing for the existence of some inequalities which are unfair and should be compensated....