Inequality of opportunities in Brazil: quantile estimates of counterfactual distribution

Abstract

The aim of this study is to measure the inequality of opportunities in Brazil. For this purpose, we use the theoretical approach developed by Bourguignon, Ferreira e Menéndez. (2007) and an empirical strategy based on combining the method of counterfactual generation by Chernozhukov, Fernández-Val e Melly (2009), with quantile inference under misspecification proposed by Angrist, Chernozhukov e Fernández-Val (2006). The results indicate that variables such as education and occupation of parents, race and region of birth produce significant effects (direct and indirect) on income of individuals. In summary, the proportion of inequality of opportunity in total Brazilian inequality can vary between 29% and 35%.