Title:
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Inequality of opportunity in earnings in Egypt
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This thesis focuses primarily on inequality of opportunity in earnings in Egypt. It is guided by three research questions, namely: (i) What has been the level and evolution of inequality in Egypt, with a special focus on inequality of opportunity in earnings, (ii) what are its underlying causes, and (iii) what can/ought to be done to promote greater equality in society? Its main contribution lies in estimating inequality of opportunity in earnings and identifying its primary determinants. It uses labor market survey data for the years 1998, 2006 and 2012 and applies both parametric and nonparametric techniques. These findings are placed into a broader discussion of the evolution of inequality in Egypt. In terms of the level of inequality, available measures suggest that Egypt fares reasonably well thanks in large measure to the persistence of historical socialist reforms. On inequality of opportunity in earnings, this thesis finds that conditions attributable to individuals' circumstances account for 10% to 20% inequality. The groups that suffer from the highest levels of inequality of opportunity are male youth and females and the most important determinants of opportunity inequality are parents' levels of education and area of birth. Regarding its causes, the analysis lends support to the idea that inequality of opportunity in Egypt reflects both the policies and politics of their time and the legacies of the past. This conclusion is based on a comparative analysis of the policies adopted during the Mubarak regime with those adopted in earlier periods. As for how to promote greater equality of opportunity in Egypt, reforms should empower disadvantaged citizens by providing better education, more equal public investment across geographic areas, and promote women's participation in the labor market in a context of inclusive political institutions.
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