Education, Gender and Income Inequalities. Comparative Study Between Algeria, Egypt, Lebanon and Tunisia

Abstract

The aim of this article is to identify and compare the impact of human capital investment, gender and labour market characteristics on income inequality in the different categories of young employed people in four Arab countries (Algeria, Tunisia, Egypt and Lebanon). We are supported by the results of the SAHWA Youth Survey 2015. The main results show a significant impact of human capital investment on incomes in the countries studied. It is greatest in Lebanon and Tunisia. Additionally, when levels of human capital are equal, young Lebanese are the best paid. Educational inequalities linked to social origin have a confirmed effect on the investment in education, above all in Egypt and Lebanon. What is more, the effects of gender inequalities are clearly evident despite women investing more than men in human capital: with equivalent levels of education and experience women’s income is 54% lower on average than men’s. This differential is still more pronounced in Algeria and Egypt. For Algeria, though the impact of social origin on education inequalities is modest compared to the other countries, the study shows that it is at the lower end of the scale when it comes to the return on human capital and income equality between men and women. The difficulty of incorporating the best educated into the labour market, the social management of employment and the absence of a clear wage policy in the private sector may explain these income inequalities.