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Channels of inequality of opportunity: The role of education and occupation in Europe

Author

Listed:
  • Juan C. Palomino

    () (Universidad Complutense de Madrid, EQUALITAS and CEDESOG, Spain)

  • Gustavo A. Marrero

    () (Universidad de la Laguna, EQUALITAS and CEDESOG, Spain)

  • Juan G. Rodriguez

    (Universidad Complutense de Madrid, EQUALITAS and CEDESOG, Spain)

Abstract

This paper studies the contribution of individual education and occupation to individual opportunity in Europe. Although the differences in inequality of opportunity (IO) among European countries are significant, no systematic approach has yet been proposed to analyse the channels through which different individual circumstances turn into different income levels. Here, we propose a simple two-step method to quantify the contribution to IO of individual education and occupation across Europe in 2004 and 2010. We find that the level of education channels up to 30\% of total IO, with important differences across Europe but no clear patterns of change over time. Moreover, we observe a negative correlation between the share of IO channelled through education and the share of the population with tertiary education. Once education is taken into account, the occupational category of individuals explains less than 5\% of total IO in most European countries.

Suggested Citation

  • Juan C. Palomino & Gustavo A. Marrero & Juan G. Rodriguez, 2016. "Channels of inequality of opportunity: The role of education and occupation in Europe," Working Papers 411, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2016-411
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2016-411.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ana Suárez à lvarez & Ana Jesús López Menéndez, 2018. "Inequality of Opportunity in Developing countries: Does the income aggregate matter?," LIS Working papers 739, LIS Cross-National Data Center in Luxembourg.

    More about this item

    Keywords

    Inequality of opportunity; education; occupation; Europe.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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