Opportunity bias in Spain: empirical evidence, drivers and trends

Abstract

The aim of this study is to measure opportunity bias in Spain. This purpose requires to analyse current outcomes as a function of opportunities, and how the latter affect the first. Opportunities are defined in terms of those circumstances of the individuals that are out of their control. It is crucial that these characteristics are exogenous, which we ensure by using information of the individual and her household when she was around 14 years old. The variation in educational opportunities is determined by circumstances in an 80%, mainly due to family origin. The share is between 30 and 45% for labour situation and hourly wage. Labour market gaps are partly shaped by family origin, but regional differences have the largest impact. In 2019, more than half income inequality is generated by inequality of opportunity, a share that has steadily increased since 2004.