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Playing the birth lottery in Europe

Annaelena Valentini, Paolo Brunori, Francisco H. G. Ferreira and Pedro Salas-Rojo
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Annaelena Valentini: University of Florence
Paolo Brunori: University of Florence, III-LSE
Francisco H. G. Ferreira: III-LSE
Pedro Salas-Rojo: CUNEF

No 695, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: We analyse the extent to which a person’s country of origin -alongside other factors beyond their control, such as their parents’ education and occupation- are predictive of adult incomes in Europe. Interpreting the joint predictive power of inherited circumstances as a measure of inequality of opportunity, we employ data-driven methods to estimate inequality of opportunity for household disposable incomes, treating Europe as a single entity. To ensure representativeness, we combine data from EUROSTAT and three different household surveys to construct a sample that represents the population of Europe, accounting for country-of-birth population shares within countries. We estimate overall inequality in Europe at 39 Gini points in 2019, with inequality predicted by ascriptive characteristics accounting for a full 23 Gini points. The country where a person was born accounts for 64% of the latter figure, emerging as the most significant predictor compared to other factors such as parental occupation (26%) and parental education (9%). The level of inequality of opportunity observed in Europe as a whole is comparable to that in China and India and significantly higher than estimates for the United States.

Keywords: inequality of opportunity; place of birth; migration; income distribution; Europe. (search for similar items in EconPapers)
JEL-codes: D31 J60 O52 O54 (search for similar items in EconPapers)
Pages: pages
Date: 2026-06
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http://www.ecineq.org/milano/WP/ECINEQ2026-695.pdf First version, 2026 (application/pdf)

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