The Roots of Inequality [electronic resource] : Estimating Inequality of Opportunity from Regression Trees / Brunori, Paolo.

By: Brunori, PaoloContributor(s): Brunori, Paolo | Hufe, Paul | Mahler, Daniel GerszonMaterial type: TextTextPublication details: Washington, D.C. : The World Bank, 2018Description: 1 online resource (35 p.)Subject(s): Equality | Living Conditions | Machine Learning | Opportunity | Poverty Assessment | Poverty Reduction | Random ForestsAdditional physical formats: Brunori, Paolo.: The Roots of Inequality: Estimating Inequality of Opportunity from Regression TreesOnline resources: Click here to access online Abstract: This paper proposes a set of new methods to estimate inequality of opportunity based on conditional inference regression trees. It illustrates how these methods represent a substantial improvement over existing empirical approaches to measure inequality of opportunity. First, the new methods minimize the risk of arbitrary and ad hoc model selection. Second, they provide a standardized way to trade off upward and downward biases in inequality of opportunity estimations. Finally, regression trees can be graphically represented; their structure is immediate to read and easy to understand. This will make the measurement of inequality of opportunity more easily comprehensible to a large audience. These advantages are illustrated by an empirical application based on the 2011 wave of the European Union Statistics on Income and Living Conditions.
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This paper proposes a set of new methods to estimate inequality of opportunity based on conditional inference regression trees. It illustrates how these methods represent a substantial improvement over existing empirical approaches to measure inequality of opportunity. First, the new methods minimize the risk of arbitrary and ad hoc model selection. Second, they provide a standardized way to trade off upward and downward biases in inequality of opportunity estimations. Finally, regression trees can be graphically represented; their structure is immediate to read and easy to understand. This will make the measurement of inequality of opportunity more easily comprehensible to a large audience. These advantages are illustrated by an empirical application based on the 2011 wave of the European Union Statistics on Income and Living Conditions.

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