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CPS1254 Yu Jin et al.
Where ( ) means the mean of . Since it has been assumed that the
fitting results are entirely determined by objective "environmental" factors,
( ) is a measure of opportunity inequality.
Jiang Qiuchuan and Zhang Kezhong(2015) introduced the concept of
equitable distribution equivalence income proposed by Atkinson (1970). Its
1
magnitude depends on the unequal degree and average income level of real
income distribution. Therefore, the introduction of this concept can reflect
both expected income and income fluctuation. The equal distribution
equivalent income of is:
1
1 1− 1−
( ∑ =1 ∑ =1 ( ) )
⁄
= 1 ≠ 1 (3)
(∏ ∏ ) = 1
{ =1 =1
Among them, ≥ 0 is the unequal aversion coefficient proposed by
Atkinson (1970), thus a new nonparametric estimation is obtained:
= { 1 1 , … , 1 , … , 1 } (4)
1
By comparing the newly established counterfactual distribution, the
expected income and income risk of different "environments" are fully
considered. Therefore, this paper uses this counterfactual distribution to
measure the degree of inequality of opportunity by no-parametric method.
3. Results
The construction of counterfactual distribution is to measure the degree
of inequality of opportunity. When we measure inequality of income and
inequality of opportunity, the unequal index we choose is Gini coefficient.
However, in order to ensure the accuracy of the results, all calculations are
repeated using the Theil index. It is found that inequality of opportunity
estimated by Theil index is smaller, but the overall trends and differences
between the two indicators are basically the same. So the results calculated by
Gini coefficient will only be presented in the subsequent reports. At the same
time, this paper will analyze the absolute value ( ) and the relative value
( )/() of the opportunity inequality.
^
Firstly, we analyze the general situation and the trend of change year by
year of inequality of opportunity in the income of our residents from 2003-
2013, and the results are shown in Figure 3-1. From the calculated Gini
coefficient of residents' income in each year, we can see that the inequality of
residents' income in China has a rising trend in 2003-2013. In this paper, two
points need to be emphasized: first, the income data in this paper do not
adjust inflation. Considering that the calculation result of income Gini
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