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Inequality of opportunity in Europe: Economic and policy facts

Author

Listed:
  • Gustavo A. Marrero

    (Universidad de La Laguna)

  • Juan Gabriel Rodríguez

    (Instituto de Estudios Fiscales and Universidad Rey Juan Carlos)

Abstract

In this paper we consider the main factors that have influenced inequality of opportunity (IO) in Europe. Based on the EU-SILC database, we find that the various levels of development, education and social protection expenditure in 23 European countries significantly affect IO. Dropping out from school, reaching at least secondary levels of education, social spending to promote social integration and child care are the most important variables of those analyzed. The functioning of the labor market and the tax structure, on the other hand, do not have a significant bearing on IO. Lastly, we note that IO and total inequality exhibit differentiated explanatory patterns, which signifies that means of redistribution that serve to reduce overall inequality do not necessarily reduce IO.

Suggested Citation

  • Gustavo A. Marrero & Juan Gabriel Rodríguez, 2010. "Inequality of opportunity in Europe: Economic and policy facts," Working Papers 172, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2010-172
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2010-172.pdf
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    Cited by:

    1. Francisco H.G. Ferreira, 2012. "Inequality of Opportunity Around the World: What Do We Know So Far?," World Bank - Inequality in Focus, The World Bank, vol. 1(1), pages 8-11, April.
    2. Luis F. Lopez-Calva, 2012. "Declining Income Inequality in Brazil: The Proud Outlier," World Bank - Inequality in Focus, The World Bank, vol. 1(1), pages 5-8, April.
    3. Pedro Olinto & Jaime Saavedra, 2012. "An Overview of Global Income Inequality Trends," World Bank - Inequality in Focus, The World Bank, vol. 1(1), pages 1-4, April.
    4. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni del Dipartimento di Politica Economica ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    More about this item

    Keywords

    inequality of opportunity; growth; education; public expenditure; labor market.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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