Concepts of Inequality
Development Issues No. 1
21 October 2015
Development Issues are intended to clarify concepts used in the analytical work of the Division, provide references to current development issues and offer a common
background for development policy discussions. This note was prepared by Helena Afonso, Marcelo LaFleur and Diana Alarcón in the Development Strategy and Policy
Analysis Unit in the Development Policy and Analysis Division of UN/DESA. For more information, contact: alarcond@un.org. The full archive is available at:
www.un.org/en/development/desa/policy/wess/ 1
equalized is not means of living, but the actual opportunities Equality of opportunity exists when life outcomes depend
of living that give people the freedom to pursue a life of their only on factors for which persons can be considered responsible,
own choosing. and not on disadvantageous attributes outside of their control.
Frances Stewart has made the case for going beyond a focus It argues that gender, ethnicity, family background, etc. should
on individuals and examining as well the inequalities that arise not determine outcomes. In practical terms, it exists when
between individuals due to the group(s) they identify with (cul- individuals are compensated in some way for their disadvanta-
tural, gender, age, etc.) and that may be the cause of prejudice, geous circumstances.
discrimination, marginalization, or advantage—a phenomenon Equality of outcome describes a state in which people have
she named horizontal inequalities (Stewart, 2002). similar economic conditions. While inequality in terms of
To conclude, a society can be said to provide equal opportuni- opportunity is defined on an ex-ante basis and is concerned with
ties when circumstances do not determine the differences in life ensuring a common starting place, inequality of outcomes is con-
outcomes (Ferreira et al., 2009). In practice, equality of oppor- cerned with the finish line and depends on both circumstances
tunity exists when policies compensate the individuals facing beyond one’s control as well as talent and effort.
disadvantageous circumstances.
References
To sum up Alkire, S., Foster, J., Seth, S., Santos, M. E., Roche, J. M., and Ballon, P. (2015).
Economic inequality refers to how economic variables are dis- ‘Multidimensional Poverty Measurement and Analysis’, Oxford: Oxford
University Press. Retrieved on 2 October 2015 from Oxford Scholarship
tributed—among individuals in a group, among groups in a
Online: August 2015.
population, or among countries. Development theory has largely Ferreira, F. H. G., Vega, J. R. M., Paes de Barros, R., and Chanduvi, J. S. (2009),
been concerned with inequalities in standards of living, such as ‘Measuring Inequality of Opportunities in Latin America and the
inequalities in income/wealth, education, health, and nutrition. Caribbean’, The World Bank and Palgrave Macmillan.
Much of this discussion has boiled down to a debate between two Sen, A. K. (1999), ‘Development as freedom’, Anchor Books.
perspectives: the first is primarily concerned with the inequal- Stewart, F. (2002), ‘Horizontal Inequalities: A Neglected Dimension of
ity of opportunities, such as unequal access to employment or Development’, UNU World Institute for Development Economics
Research (UNU/WIDER), WIDER Annual Lectures 5.
education; and the second with the inequality of outcomes in
United Nations Development Programme (2013), ‘Humanity Divided:
various material dimensions of human well-being, such as the Confronting Inequality in Developing Countries’.
level of income, educational attainment, health status and so on.
2 October 2015