Working Paper: CEPR ID: DP17797
Authors: Bram De Rock; Domenico Moramarco
Abstract: The paper proposes a framework to assess fairness in multidimensional distributions while respecting individual preferences. We characterize a simple measure - Equivalent Advantage - that captures the distance from the current outcome to the potentially individual specific norm outcome. We introduce a nonparametric approach to partially identify our measure via set identification of individual indifference curves. Our methodology is illustrated by analyzing multidimensional fairness in Belgium using the MEqIn database. Despite the set identification, we show that our analysis of the Equivalent Advantage distribution allows for interesting insights on multidimensional inequality, poverty and opportunity distribution.
Keywords: fairness; multidimensional inequality; poverty; equality of opportunity; equivalent advantage; individual preferences; nonparametric analysis
JEL Codes: D30; D63; I14; I32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| individual preferences (D11) | assessment of fairness (D63) |
| current outcome (E66) | equivalent advantage distribution (D39) |
| equivalent advantage distribution (D39) | multidimensional inequality (D63) |
| equivalent advantage distribution (D39) | poverty (I32) |
| equivalent advantage distribution (D39) | opportunity distribution (D39) |
| distance from fair outcome (D63) | individual disadvantage (I24) |
| specific demographic groups (R20) | welfare losses (D69) |