Breaking the Chains of Inherited Inequalities

Latin America and the Caribbean is one of the most unequal regions in the world. We know that. But this inequality has deeper roots and different features than in other regions, and by identifying them we can work towards solving them more effectively. That is one of the contributions of the publication Inherited inequalities: The role of skills, jobs and wealth in opportunities for new generations, by CAF—development bank of Latin America.

Inequality in Latin America and the Caribbean is not only limited to income, but systematically manifests itself in other areas of well-being such as wealth, education, land ownership and job opportunities. Lack of opportunities for building human capital, securing good jobs in labor markets and accumulating assets are all key factors causing intergenerational inequalities.

The lack of intergenerational mobility has major consequences, not only in terms of equity, but also because it can impact economic growth and political-institutional stability in a country. These three key areas for inclusive and sustainable development make social mobility an important prerequisite for greater and more stable long-term progress in Latin American and Caribbean countries.

Breaking the chains of inherited inequalities requires special attention at home, on issues such as teenage pregnancies and parenting practices. We have to support families in the region to improve not only the nurturing environment at home, but also for parents to implement simple practices sooner rather than later, especially for proper nutrition and early stimulation of children.

Investments during adolescence entail commitment to working together between the family, school, physical and social environment and the world of labor. All of them must provide quality inputs for learning, physical and mental health and positive guidance for adolescents towards educational and labor aspirations, thereby enabling them to build new human capital that can be offered later for their best possible use in labor markets.

Technical-vocational and university education must take this baseline of skills and enhance it with more sophisticated tools that are valued in labor markets and that facilitate productive and social integration during adulthood. To this end, technical-vocational and higher education in the region face the great challenge of expanding their coverage, without neglecting the quality and importance of the educational services on offer.

Especially at the primary, secondary and higher levels, the region’s education systems are still far from closing socioeconomic gaps and becoming infallible allies of intergenerational mobility. Low-quality educational services received by children and young people from the most disadvantaged families, the high levels of school segregation seen in the region, in addition to limited access and quality problems in higher education are three key factors.

In addition to efforts to improve human capital are active job policies, including training, internships and job search assistance, which are aligned with the three main guidelines for labor policies aimed at promoting greater mobility. Evidence of their success presented at EDR2022 suggests that they should receive more funding and focus on disadvantaged populations, such as Afro-descendants, indigenous people and residents of peripheral neighborhoods.

Lastly, further development of universal social protection against unemployment can also enable the most vulnerable workers and their families to shield themselves against adverse events and to spend more time on training and job search.

Equalizing job opportunities, improving people’s quality of life and reducing inequality, to help children have a better future than their parents and take the leap in productivity and formality, is a priority to which there is no single answer. But the goal of improving progress opportunities for all Latin Americans and Caribbeans requires the commitment of all parties.