Inequality in Spain: How birth, family and education shape earnings

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Inequality in Spain starts long before the job is offered

More than a third of people in Spain depend on factors at birth when it comes to income. The reality of a worker’s life—who they are, where they were born, and even their gender—shapes decisions about accepting a job, choosing a profession, and the level of success they might achieve. The outcome is not just about effort or luck; it’s influenced by the starting point each person has in life.

When looking at wages and career opportunities, it is estimated that between 30 and 45 percent of inequality is visible right from birth. Coming from a wealthy family can nearly double the average salary, with disparities around 43 percent between affluent and disadvantaged groups according to a recent Isak Foundation study. These numbers highlight how family background sets a long shadow over a person’s earnings later on.

Researchers Martha Curull, Rich Sarah, and Lucia Gorjon examined the roots of Spain’s inequalities. Their report warns that equality of opportunity has declined over the past decade, posing risks to social cohesion and to long-term economic growth. The findings imply that what people can achieve professionally is entwined with the social class they were born into, and that this gap persists as individuals move through life.

Additional work, such as Olga Cantó’s research for the La Caixa Foundation, shows a polarization in the job market especially among the youngest. Wealth is accumulating for those at the top while opportunities for the less advantaged shrink, threatening the future stability of the welfare state and the overall economy.

Returning to the Isak Foundation report, family background explains about 52 percent of income inequality in Spain, a figure that rises to nearly 60 percent for those under forty. The generational divide widens as millennials encounter a tougher path to economic security than previous cohorts, with Generation Z showing even stronger signs of this pattern.

Geography also plays a decisive role in earnings. The national origin of parents can tilt the odds of securing a higher salary. Children born to one Spanish parent and one parent from Latin America or Africa tend to earn less, while two parents born in Spain see a more pronounced earnings gap. When a non-EU father hails from the Old Continent, the family’s income advantage diminishes in other scenarios as well. These patterns suggest that family networks and national origin continue to exert substantial influence over job prospects and pay in Spain.

Basic gaps in the labor market are closely tied to education. The research depicts a cycle where higher education paves the way to wealth, yet wealth often increases the likelihood of obtaining quality education. The educational path—whether university study, vocational training, or entering the workforce after compulsory schooling—depends heavily on the place where a person is born, with estimates around 80 percent influence from birthplace. Solving the education gap would involve more scholarships for low-income students and stronger school support to prevent dropout, which could help narrow income disparities across social groups. Yet the authors note that the most pronounced differences currently appear among wealthier families, where even with opportunities, the gap remains significant.

Gender differences in academic achievement and higher education persist, with women generally performing better on average. However, the pay gap remains, and the disparity grows with family wealth. Data suggest that a man from a wealthy background earns about half again as much as a man from a very vulnerable background, while a woman from a wealthy background earns roughly 15 percent more than her similarly vulnerable counterpart. These figures underscore that familial wealth magnifies gendered earnings disparities in Spain, even as women close some education gaps.

In summary, the research paints a clear picture: social origin, geography, and education intersect to shape economic outcomes long before a person begins their career. Addressing these entrenched patterns would require sustained investment in education, targeted support for low-income families, and policies that promote equal access to quality opportunities for all regions and communities. Markers of opportunity, from school support to the fairness of recruitment practices, matter not just for individuals but for the resilience and growth of the economy as a whole. These elements form the backbone of a fairer society that can sustain itself in the years to come.

—Citations: Isak Foundation report on income inequality; studies by Curull, Cantó and colleagues on opportunity and education; demographic analyses of Spain’s labor market.

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