The book ”Capital in the 21. Century” by Piketty (2014) marked the peak of attention for the topic of income inequality and spread awareness on the importance of ongoing research. During my master thesis, I had worked on decomposition methods for labor earnings. Motivated by this development...

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....