Employment, Social Affairs & Inclusion

Inequality of opportunity - income dimension

pdf icon Inequality of opportunity - income dimension  en
Indicator name Inequality of opportunity - income dimension
Type (EU indicator/ NAT - national indicator) EU - Primary indicator
Periodicity Annual
Detailed definition The indicator measures the gap in at-risk-of-poverty rates between the children (for the age cohort: less than 18 years old) of low-educated versus those of high-educated parents. It has two versions: an unweighted gap and a weighted gap. The unweighted gap version is obtained as the difference between the AROP rate of children with low-educated parents and the AROP rate of children with high-educated parents. The unweighted indicator should be interpreted as the extent to which being at risk-of-poverty is driven by parents’ educational attainment level for children (irrespective of the composition of the total children population as regards parents’ educational attainment level). However, it is also relevant to use a weighted version of this gap indicator to take account of differences, across countries, in the composition of the total children population as regards parents’ educational attainment level.
Breakdowns None
Comments/ Policy relevance Relevant to combatting poverty and social exclusion. The gap indicator is a proxy measure of inequality of opportunity based on the income dimension.
Source EU-SILC (for 2004-present)
SPC portfolio section Investing in Children - access to resources
Key dimension Inequality of opportunity based on the income dimension.
Context of use JAF dimension PA11a (as sub-indicator)
Further details and related documents The weighted indicator corresponds to the unweighted indicator multiplied by the share of children with low-educated parents in the total children population. The weighted indicator formula thus corresponds to: (AROP rate of children with low-educated parents - AROP rate of children with high-educated parents) x (share in percentage of children with low-educated parents in the total children population) The weighted indicator adds an additional (mitigating) factor to the unweighted indicator and should thus be interpreted as providing an overall indication of the size of the extent to which being at risk-of-poverty is driven by parents’ educational attainment level for children. It factors in the unweighted gap as well as whether low-educated parents make relatively a large or small chunk of all parents in a given country.

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