Inequality of Opportunity in Egypt

The article evaluates the contribution of inequality of opportunity to earnings inequality in Egypt and analyzes its evolution across three time periods and different population groups. It provides parametric and nonparametric estimates of a lower bound for the degree of inequality of opportunity for wage and salary workers. On average, the contribution of opportunity-shaping circumstances to earnings inequality declined from 22 percent in 1988 to 15 percent in 2006. Levels of inequality of opportunity were fairly stable while earnings differentials widened markedly, leading to a decline in the share of inequality attributable to opportunities. Father's background and geographic origins had the largest effect on earnings, although the impact of mother's education has risen in recent years. The degree of inequality of opportunity did not differ significantly by gender or rural–urban area, although the incidence was lower for men and for rural areas. The results indicate an increase in inequality of opportunity across age groups, but there is some evidence that opportunity differentials have been declining for the oldest generation. Copyright 2012, Oxford University Press.