Publication: Inequality of opportunity in Bulgaria: Policy Note
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2024-07-29
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2024-07-29
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Using data from a recent EU-SILC module on intergenerational mobility, this policy note explores to what extent the high levels of inequality prevalent in Bulgaria are due to inequality of opportunity, that is, inequality due to circumstances beyond an individual’s control. The results show that over half of the income inequality in Bulgaria is due to inequality of opportunity, the highest share in the European Union. Using Shapley's decomposition techniques, we find that disparities in parents’ education explain most of the inequality of opportunity. Related to this, Bulgaria is one of the countries in Europe where children’s education is strongly linked to that of their parents, resulting in little educational intergenerational mobility. Policies to tackle high levels of inequality of opportunity mainly center around reforming the educational system as gaps in educational attainment are evident as early as the early childhood level, and schools have typically been inequality reinforcing. Greater access to quality early childhood education, delayed tracking of students until they have acquired foundational skills, and improved access to quality tertiary institutions are key to reducing inequality of opportunity. Complementary analysis suggests there are sizable growth gains to be made in Bulgaria if human capital attainment is improved and reducing inequality of opportunity presents one such pathway.
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“Vaughan, Kristina; Robayo-Abril, Monica. 2024. Inequality of opportunity in Bulgaria: Policy Note. © World Bank. http://hdl.handle.net/10986/41965 License: CC BY-NC 3.0 IGO.”
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