Measuring of Inequality of Opportunity: Parametric Approach
Measuring of Inequality of Opportunity: Parametric Approach

Summary/Abstract: This paper measures the contribution of opportunity inequality to inequality of income and earnings in the Russian Federation, using a parametric approach. The paper uses the data from the 20-th round of the Russian Longitudinal Monitoring Survey – Higher School of Economics, which is a series of annual nationwide representative surveys. The calculations were made for each of the three age cohorts in order to assess the contribution of opportunity inequality to inequality of income and earnings and their changes over time. According to the results obtained by our research team, the contribution of opportunity inequality to income inequality in Russia is 11.51%, and it quite significantly varies across different age cohorts. The contribution of opportunity inequality to inequality of earnings is somewhat greater – 16.32%, but is almost the same for all age cohorts. The results also reveal that throughout all age cohorts, the influence of inequality of opportunity upon inequality of income and earnings is mostly due to the direct impact of circumstance-factors upon an individual’s income and earnings, and not due to their influence upon an individual’s education level.

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