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Difference between Horizontal Equity and Vertical Equity

Difference between Horizontal Equity and Vertical Equity

Horizontal equity is when people in the same situations are treated equally, while vertical equity is when people in different situations are treated differently. In most cases, horizontal equity is ideal, as it creates a level playing field. However, there may be some cases where vertical equity is necessary in order to achieve fairness. Ultimately, it is up to policymakers to decide which type of equity is more important in a given situation.

What is Horizontal Equity?

Horizontal equity is the principle that individuals who are in similar situations should be treated similarly. In other words, it seeks to ensure that people with similar circumstances have access to the same opportunities and resources. This principle is often applied in the context of public policy, where it is used to assess whether a particular policy is fair. For example, a policy that provides free healthcare to all citizens would be considered horizontally equitable, as it would provide everyone with the same opportunity to receive medical care.

On the other hand, a policy that only provides free healthcare to low-income citizens would be considered vertically inequitable, as it would give some citizens an advantage over others. Horizontal equity is often contrasted with vertical equity, which is the principle that individuals who are in different situations should be treated differently. Vertical equity typically takes into account factors such as need or merit, rather than treating everyone the same.

What is Vertical Equity?

Vertical equity is the principle that individuals who are in the same circumstances should be treated similarly, while those who are in different circumstances should be treated differently. In other words, it is the idea that fairness requires that people who are alike should be treated alike, and people who are unalike should be treated differently.

This principle is often applied to economic issues, such as taxation, but it can also be applied to social issues, such as education and healthcare. The goal of vertical equity is to create a society in which everyone has an equal opportunity to thrive, regardless of their circumstances. By taking into account the different needs of different groups of people, vertical equity can help to create a more just and equitable society.

Difference between Horizontal Equity and Vertical Equity

Horizontal equity and vertical equity are two important concepts in social science and economics. horizontal equity refers to the idea that people who are in the same situation should be treated the same, while vertical equity refers to the idea that people who are in different situations should be treated differently. For example, if two people have the same income, they should be taxed at the same rate.

However, if one person has twice the income of the other, they should be taxed at a higher rate. The principle of vertical equity is often invoked in discussions of taxation, welfare programs, and other public policies. While horizontal equity is important for ensuring fairness, vertical equity is necessary for ensuring that scarce resources are distributed in a way that is most beneficial to society as a whole.

Conclusion

Horizontal equity is the principle that people with equal abilities and needs should receive an equal share of resources. Vertical equity is the principle that people with different abilities and needs should receive different shares of resources, based on their individual circumstances. Both principles are important in order to create a fair society, but it is important to understand the difference between them so that we can make informed decisions about how to distribute resources fairly.

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