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Level of Fairness and Justice in Labor Market: Evidence from Tunisia Post-Revolution

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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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Notes

  1. For more information see: https://www.tanitjobs.com/blog/158/l-emploi-informel-en-Tunisie.html/

  2. Informal employment refers to employment that does not comply with the country’s labor laws: no contract, no social insurance, inadequate working conditions (ILO 2012)

  3. G (0) is known as the Teil-L or the logarithmic mean. This index gives a little more importance to inequality in the bottom of the distribution than to inequality among the rich.

  4. GE (0) is defined by Theil-L or standard deviation.

  5. All information concerning the TLMPS 2014 comes from the ERF Working paper of Assaad et al. (2016) “Introducing the Tunisia Labor Market Panel Survey 2014,” ERF working paper, n°1040.

  6. This is the last available database for this country (Tunisia)

  7. Internet connection is still a sign of comfort, it is considered a luxury good and not vital or of first necessity in underdeveloped countries.

  8. As expected, being a male in Tunisia increases your chances of having a formal job; this contradicts government efforts to ensure equality between the two sexes and to encourage women to share professional life with men (recruitment of women in several public institutions). On the other hand, we can see the crowding of men in low added value work with low wages in informal job.

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Anis, S., Mekki, H. Level of Fairness and Justice in Labor Market: Evidence from Tunisia Post-Revolution. J Knowl Econ 12, 1187–1214 (2021). https://doi.org/10.1007/s13132-020-00664-y

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