Education and economic inequalities

The paper examines the structure and determinants of economic inequality in Greece and the EU-15 countries using data from the latest available Greek Household Budget Survey and the 7th wave of the ECHP survey. Emphasis is given to the possibly less well-researched but nonetheless important role of education in the shaping of economic inequalities. The analysis shows that in Greece, as in most EU countries, economic inequalities are primarily due to within population group disparities. However, nearly one fourth of aggregate inequality in most countries and mainly in Mediterranean countries is attributed to disparities between the population groups defined according to their educational characteristics and to a lesser extent to the occupational characteristics of the household head. In the light of this former finding, policies aimed at reducing educational disparities and improving human capital within the more disadvantaged groups of the population are likely to be more effective policies for alleviating economic inequalities