Publication:
Inequality in Earnings and Adverse Shocks in Early Adulthood

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dc.contributor.authorAdoho, Franck M.
dc.contributor.authorTien, Bienvenue N.
dc.date.accessioned2018-08-15T18:40:00Z
dc.date.available2018-08-15T18:40:00Z
dc.date.issued2018-08
dc.description.abstractThe inequality of opportunity theory postulates that achievement gaps arising because of factors beyond the individual's control are morally unacceptable and should therefore be compensated by society. These factors or circumstances range from the individual's social background to adverse shocks. Most studies have focused on the contribution of social background and genetic and other childhood-related circumstances to inequality of opportunity. Borrowing insights based on the impressionable years hypothesis in social psychology, this paper tests how exposure to adverse shocks, such as war, in early adulthood (ages 18-25) affects the individual's future labor earnings and subsequently contributes to earnings inequality. The application to the Democratic Republic of Congo is associated with two significant takeaways. First, all else equal, individuals who experience intensely violent conflict at a young age earn significantly less than their counterparts. Second, after controlling for the individual's social background, the share of overall inequality in earnings accounted for by the experience of adverse shocks in early adulthood is not negligible, ranging from 2.5 to 3.5 percent. These insights broaden our understanding in the discussion on inequality of opportunity and represent a new path in the design of allocation policies that seek to reduce inequality and poverty.en
dc.identifierhttp://documents.worldbank.org/curated/en/672161533317723627/Inequality-in-earnings-and-adverse-shocks-in-early-adulthood
dc.identifier.doi10.1596/1813-9450-8538
dc.identifier.urihttps://hdl.handle.net/10986/30228
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8538
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectINEQUALITY
dc.subjectADVERSE SHOCKS
dc.subjectEARLY ADULTHOOD
dc.subjectINEQUALITY OF OPPORTUNITY
dc.subjectWAGES
dc.subjectVIOLENCE
dc.subjectSOCIOECONOMIC DEVELOPMENT
dc.subjectPOVERTY
dc.subjectLABOR POLICY
dc.subjectSOCIAL PROTECTION
dc.titleInequality in Earnings and Adverse Shocks in Early Adulthooden
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleInequality in Earnings and Adverse Shocks in Early Adulthood
okr.date.disclosure2018-08-03
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/672161533317723627/Inequality-in-earnings-and-adverse-shocks-in-early-adulthood
okr.guid672161533317723627
okr.identifier.doi10.1596/1813-9450-8538
okr.identifier.externaldocumentum090224b085e5345d_3_0
okr.identifier.internaldocumentum30325353
okr.identifier.reportWPS8538
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/672161533317723627/pdf/WPS8538.pdfen
okr.region.administrativeAfrica
okr.region.geographicalSub-Saharan Africa
okr.statistics.combined961
okr.statistics.dr672161533317723627
okr.statistics.drstats683
okr.topicEducation::Economics of Education
okr.topicEducation::Primary Education
okr.topicPoverty Reduction::Employment and Shared Growth
okr.topicPoverty Reduction::Inequality
okr.topicSocial Development::Poverty and Social Impact Analysis
okr.topicSocial Development::Psychology
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicSocial Protections and Labor::Wages, Compensation & Benefits
okr.unitPoverty and Equity Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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