중동부유럽
연구정보
[경제] Montenegro Country Economic Memorandum : Towards a Resilient Growth Strategy - Inequality of Opportunity Holds Back Montenegro’s Labor and Human Capital Potential : Background Note
중동부유럽 기타 국외연구자료 연구보고서 - World Bank 발간일 : 2023-05-15 등록일 : 2023-07-31 원문링크
Montenegro’s income inequality, though recently on a decline, is still relatively high when compared to European Union (EU) countries. Income inequality partly reflects inequality of opportunity, that is, when circumstances that should not be associated with individual achievement still determine income. Inequality of opportunity not only raises the question of fairness but also limits Montenegro’s economic growth potential and living standards convergence with the EU. This note presents recent analyses of inequality of opportunity in acquiring higher education, job outcomes, and earnings in Montenegro. Using 2019 EU-Statistics of Income and Living Conditions (SILC) data, this analysis aims to quantify the contribution of inequality of opportunity to income inequality as well as the role of different determinants, using decomposition methodology and comparing to EU countries where evidence is available. The analysis finds that 36 percent of the labor income inequality in Montenegro is attributable to inequality due to circumstances beyond an individual’s control. Parents’ education and gender play a major role in determining income inequality of opportunity. Parents’ education and the presence of working parents contributed greatly to the unequal access to opportunities in tertiary education attainment. Montenegro’s unequal employment opportunity across circumstances is higher than in all EU countries, and for labor force participation, Montenegro’s unequal opportunity is higher than all but three EU countries. Gender in particular accounts for half of the unequal opportunities in labor force participation. Parent’s education and financial situation during childhood are important contributors to dissimilarity in employment opportunities. Policies to narrow gaps in opportunity are thus important to boost Montenegro’s labor and human capital potential and economic growth.
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