Inequality of Opportunity in the Labor Market for Higher Education Graduates in Egypt and Jordan
In a well-functioning labor market, outcomes differ across individuals because of the quality of their human capital and level of skill, as well as the work effort they expend. Likewise, when the education system is functioning well, the human capital and skills individuals accumulate should reflect differences in their effort in school. Therefore, in a country with both a well-functioning education system and a well-functioning labor market, labor market outcomes will reflect individual effort, some of which is embodied in human capital and skills. However, the labor market could fail to properly allocate or reward human capital and skills, but instead allocate human capital and rewards on the basis of individuals’ circumstances, such as their social class, their gender or where they live. While unequal outcomes related to effort are morally justifiable, unequal allocations on the basis of circumstances outside of individuals’ control are morally unjustifiable, and can be termed inequality of opportunity (Roemer 1998). Inequality of opportunity also offends people’s sense of fairness, leading to anger and frustration among those who are aggrieved, thus threatening social cohesion, reducing trust in public institutions and undermining political stability.
KeywordsLabor Market Human Capital General Entropy Labor Market Outcome Wage Inequality
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