Inequality of opportunities in the labor market: evidence from life in transition surveys in Europe and Central Asia

Abstract

In this paper we quantify inequality of opportunity in labor market outcomes in Europe and Central Asia using the Human Opportunity Index (HOI) methodology. Using data from the 2006 Life in Transition Survey we also compare HOI-based measures of inequality with expenditure-based measures and examine the extent to which these measures resonate with perceptions of life satisfaction and fairness. Findings show substantial inequality of opportunity in employment status and large variations across countries. Correlations between measures and perceptions of inequality suggest that inequality between groups as opposed to overall inequality has stronger association with perceptions of fairness in society. JEL: O11, O12