Abstract
This paper tries to quantify the extent of inequality of opportunity between Tunisian active populations when a number of labor market outcomes are affected by circumstances beyond individuals “control. Using recent Tunisian Labor Market Panel Survey, we firstly assess origins of differences in the occupation rate then we distinguish between formal and informal jobs finally we apply the parametric approach to explain dissimilarity in household wages. The Circumstances explain more than 22% of wage inequality and “household wealth”’ is the most contributive variable explaining inequality. The Tunisian labor market suffers from inequalities that are passed down from generation to generation. Without appropriate public policy intervention reducing corruption and cronyism, it will be bad repercussion in the political and social stability in Tunisia.
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