Inequality of Opportunity in Mexico and its Regions: A Data-Driven Approach

Thibaut Plassot

Isidro Soloaga

Pedro J. Torres

Documento de trabajo CEEY no. 02 / 2021

This research proposes a first approximation of Inequality of Opportunity (IOp) in Mexico based on a concept of ex-post compensation, fully consistent with Roemer´s approach of IOp. This framework considers the advantage reached by an individual to be determined by the circumstances at origin and by the effort exerted. The authors find that the education and the wealth of parents are the principal circumstances that shape their trajectories. Importantly, territorial variables are significant among the most disadvantaged at origin, but they hold less importance for the most advantaged. The authors also estimate that the weight of IOp in terms of total inequality varies according if they adopt an ex-post or an ex-ante approach, which can lead to different conclusions.