Inequality of Opportunity in Income and Education: Evidence from Central and Eastern Europe

Inequality of opportunity is a critical issue that significantly impacts the socioeconomic landscape. Understanding the variations in income and educational attainment has become increasingly important, as these disparities are often shaped by social determinants such as individual effort and circumstances, which can affect educational outcomes and income potential throughout life. The aim of this paper is to quantify the inequality of opportunity and to examine how circumstances beyond an individual’s control influence income and level of education in the Central and Eastern European countries. We draw on recent data from the fourth wave of the Life in Transition Survey and employ inequality of opportunity indices, Shapley and Oaxaca decompositions, and econometric models to capture the structure and magnitude of the effects. Our findings reveal that inequality of opportunity in income is mainly due to gender and, to a smaller extent, parental education, while educational attainment is mainly influenced by parental education, books at home and the mother’s occupational sector. The results provide a robust foundation for supporting targeted policies in education, employment, and pay equity, and they indicate the need to tailor strategies to the specific contexts of each Central and Eastern European country.