The Evolution of Inequality of Opportunity in Germany: A Machine Learning Approach

We show that measures of inequality opportunity (IOP) fully consistent with the IOP theory Roemer (1998) can be straightforwardly estimated by adopting a machine learning approach, and apply our method to analyze development in Germany during past three decades. Hereby, we take advantage information contained 25 waves Socio-Economic Panel. Our analysis shows declined immediately after reunification, increased first decade century, slightly again 2010. Over entire period, at top distribution always find individuals who resided West before fall Berlin Wall, whose fathers had high occupational position, mothers educational degree. East German residents 1989, low-educated parents, persistently qualify bottom.