Inequality of Educational Opportunity and Time-Varying Circumstances: Longitudinal Evidence from Peru

This paper examines the extent to which characteristics that are beyond the control of children affect their educational outcomes. This is a matter of particular interest because the distribution of educational opportunities will shape future outcomes in other realms. While time-invariant circumstances have already been examined in the inequality of opportunity (IOp) literature, the role of time-varying circumstances has not yet been addressed. For the first time, this paper provides both lower and upper-bound estimates of IOp on learning achievement and assesses the impact of time-varying circumstances on upper-bound measures. It exploits a very rich and unusual longitudinal data set, the Young Lives Study, focusing on a cohort of children that has been followed for fifteen years, surveyed for the first time when they were around a year old. The results suggest that educational IOp is sizable and time-varying circumstances do not have a major impact on upper-bound measures using panel data.