Polarization of opportunity

• Measures of inequality of opportunity do not adequately capture polarization. • Polarization indexes can be applied to distributions to assess the polarization of opportunities. • Opportunity polarization is a distinct concept from both outcome polarization and inequality of opportunity. • In the US, while inequality of opportunity and outcome polarization have increased over the last 35 years, opportunity polarization has not. • The reduction in inequality during the 1960s and 1970s is the main reason why opportunity polarization has not increased for the following generation. We introduce the concept of polarization of opportunities (POp) to explore how various circumstances shape unfair inequalities. While conventional measures of inequality of opportunity (IOp) focus on outcome disparities linked to factors such as race or gender, they do not account for how these circumstances group individuals into relatively uniform clusters. POp fills this gap by examining both the influence of circumstances and their role in clustering individuals into distinct poles. Using U.S. data, our analysis shows that while income polarization and IOp have risen over time, POp has decreased.