Research projects

The results of this project are based on the following idea: total inequality is composed of two types of inequality: the inequality of opportunities (IO), due to factors beyond the control of individuals, such as their parents' education or race, and the inequality of effort (IE), which depends on the individuals' own actions. The first result is that the normally ambiguous relationship found between inequality and growth is due to the fact that IO negatively affects growth, while IE affects it positively. The article backing up this result is at the second revision stage in the Journal of Development Economics, one of the leading journals in the field. The second result was published in one of the leading journals on inequality (The Review of Income and Wealth). This estimates for the first time the IO and the IE in 23 European countries, and the finding is that Spain, though its overall inequality has fallen, is one of the countries with the highest IO. With regard to determining factors, it has been seen that, in addition to a country's level of development, aspects related to education (mainly drop-out rates and secondary education), as well as social spending on health care, child care and integration, are significant factors when it comes to reducing IO. A monograph published by FEDEA highlights the fact that the Spanish regions worst placed in terms of IO are Extremadura, Castilla-La Mancha, the Balearic Islands and La Rioja. Understanding the results of this project is crucial for a correct implementation of public policies.