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Transition Report 2013 Stuck in transition?

Economic
inclusion


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Economic inclusion

Economic inclusion in transition

Economic inclusion is essential for development. This chapter analyses the inclusiveness of economic systems in the transition region, and finds large differences both across countries and across dimensions of inclusion. Inequality of opportunity...

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Inequality of opportunity at the household level

To what extent do circumstances at birth explain household wealth and individual educational attainment in the transition region? To answer this question consistently for as many countries as possible, the analysis in this chapter is based on...

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Inequality of opportunity with regard to household wealth

Chart 5.5 shows actual inequality of household wealth for each country, using a measure of inequality that is comparable across countries and over time.1 The measure is shown for two rounds of the LiTS – 2006 and 2010 – to give a sense of its...

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Inequality of opportunity with regard to tertiary education

Chart 5.8 shows inequality of opportunity across countries with regard to tertiary education and breaks it down into the contributions of individual circumstances. Unlike Chart 5.6, gender is included as a circumstance, and the measure of...

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Rating the inclusiveness of economic systems and institutions

In the previous section, equality of opportunity was inferred by comparing individual outcomes, in terms of wealth and education, with characteristics of those individuals that should ideally be unrelated to such outcomes, but in fact are not....

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Gender gaps

Gender inclusion gaps aim to capture the extent to which economic systems favour men over women. Seven dimensions are examined here (see Table 5.1): legal and social regulations, such as inheritance laws and ownership rights; health...

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Youth gaps

The assessment of youth inclusion gaps used indicators of labour market flexibility (since labour market rigidity particularly harms new entrants),1 youth unemployment and idleness rates, as well as measures of education and financial...

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Regional gaps

The final stage of the analysis attempts to measure regional inequality in terms of institutions, education and services, which probably reflects inequality of opportunity linked to people’s place of birth and place of residence within a country....

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Conclusion

This chapter has assessed inequality of opportunity in the transition region using two complementary approaches. First, “bottom-up” econometric analysis established the extent to which differences in household assets and tertiary education within...

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Annex 5.1 Estimating and decomposing inequality of opportunity

Annex 5.1 Estimating and decomposing inequality of opportunity
IOpwealth and IOpedu measure the degree to which variations in wealth and tertiary education respectively can be attributed to the four circumstances at birth that are the focus of analysis. The vehicle for estimating IOpwealth and IOpedu is a...

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Annex 5.2 Assumptions underlying inclusion gap calculations

Annex 5.2 Assumptions underlying inclusion gap calculations
This annex provides further background information on how the indicators described in Tables 5.1, 5.3 and 5.5 were translated into gender, youth and regional inclusion gaps. Full details and the underlying data are available online in...

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References

D. Acemoğlu and J. Robinson (2012)"Why nations fail: the origins of power, prosperity, and poverty", Crown Business, New York. R. Barro, and J.-W. Lee (2010)"A New Data Set of Educational Attainment in the World, 1950-2010.", NBER Working Paper...

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