Channels of Inequality of Opportunity: The Role of Education and Occupation in Europe
Juan Palomino,
Gustavo Marrero and
Juan Rodríguez
Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2019, vol. 143, issue 3, No 7, 1045-1074
Abstract:
Abstract Inequality of Opportunity (IO) refers to that inequality stemming from factors, called circumstances, beyond the scope of individual responsibility, such as gender, race, place of birth or socioeconomic background. In general, circumstances do not directly convert into future individual’s income. Indeed, different circumstances in childhood lead to different levels of education and different occupational categories which, in turn, contribute to generate divergent levels of income during adulthood. Using the Intergenerational Transmission modules in 2005 and 2011 from the EU-SILC, we estimate the importance of attained education and occupational category as mediating channels in the generation of IO in 26 European countries. We find that the attained level of education channels up to 30% of total IO, with important differences across Europe. Once attained education is taken into account, occupation explains less than 5% of IO in most countries. Moreover, the importance of education as a channel for IO is negatively correlated both with the share of the population that attains tertiary levels of education and with the importance of government expenditure in education relative to GDP.
Keywords: Inequality of opportunity; Education; Occupation; Europe (search for similar items in EconPapers)
JEL-codes: D63 I24 J24 (search for similar items in EconPapers)
Date: 2019
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Working Paper: Channels of inequality of opportunity: The role of education and occupation in Europe (2016) 
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Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:143:y:2019:i:3:d:10.1007_s11205-018-2008-y
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DOI: 10.1007/s11205-018-2008-y
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