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We study the difference between the ex post and ex ante perspectives in equality of opportunity. We show that the well documented conflicts between compensation and reward are but an aspect of a broader conflict between ex ante and ex post perspectives. The literature that takes the goal of providing equal opportunities as the guiding principle generally considers that this is implemented only when, ex post, all individuals with the same effort obtain equal success. It is easy to believe that ex ante compensation is another natural embodiment of the same idea. We show that this is not true.

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. This paper -- commissioned as a chapter for the Oxford Handbook of Well Being and Public Policy -- provides a critical review of the economic literature on equality and inequality of opportunity. A simple 'canonical model' of equal opportunity is proposed, and used to explore the two fundamental concepts in this (relatively) new theory of social justice: the principles of compensation and reward. Ex-ante and ex-post versions of the compensation principle are presented, and the tensions between them are discussed. Different approaches to the measurement of inequality of opportunity -- and empirical applications -- are reviewed, and implications for the measurement of poverty and of the rate of economic development are discussed.

This study provides comparable lower-bound estimates of inequality of opportunity for tertiary education (EIOp) for 31 countries in Europe, by using the two EU-SILC waves for which information on family background is available (2005 and 2011). The results reveal an important degree of heterogeneity, with Northern European countries showing low levels of inequality of opportunity and Mediterranean and Eastern European countries characterized by significant degrees of unfair educational inequalities. Parental education and occupation are the most relevant circumstances in the great majority of the countries considered. This study also exploits the two point-in-time observations available and analyses the relationship between some country-specific characteristics and inequality of opportunity in tertiary education. The analysis documents a negative association between EIOp and real GDP per capita, possibly indicating that higher equality of opportunity in tertiary education and economic growth are complementary objectives. Two results emerge as especially robust: in all the specifications we find a positive association between EIOp and the students/teacher ratio, and a negative one between EIOp and public spending in tertiary education. While we do not claim that such correlations should be interpreted causally, we think that they might indicate a meaningful underlying relationship between equality of opportunity in tertiary education and the availability of financial and non-financial resources.

This paper addresses the problem of the normative evaluation of income tax systems and income tax reforms. While most of the existing criteria, framed in the utilitarian tradition, are uniquely based on information about individual incomes, this paper, building upon the opportunity egalitarian theory, proposes new equity criteria which take into account also the socio-economic characteristics of individuals. Suitable dominance conditions that can be used to rank alternative tax systems are derived by means of an axiomatic approach. Moreover, the theoretical results are used to assess the redistributive effects of an hypothetical tax reform in Romania through a microsimulation analysis.