The Role of Family Background and Education in shaping inequalities: Evidence from the Spanish regions

Abstract

Family background characteristics and educational resources are crucial in shaping individuals' income and therefore a potential source of income inequality and inequality of opportunity. This article analyses inequalities in the Spanish diverse regions using data from the European Survey of Income and Living Conditions (EU-SILC). Along this article we analyse the relevance of family background characteristics in shaping individuals' opportunities as well as the role education plays in income inequality. Our findings show that family background characteristics are of great importance in shaping individuals' performance and opportunities of achieving a certain level of income, well-being and education; also, educational variables at regional level, such as the education expenditure per student, are highly correlated to the levels of inequality. In view of the results, it would be advisable to implement public policies targeting vulnerable groups to ensure equal opportunities and invest in education given its potential as equalizer of income inequality.