Economic Research Forum (ERF)

Inequality in higher education: Egypt, Jordan and Tunisia

2114
Attainment of higher education is strikingly unequal in Egypt and Tunisia, and a little less so in Jordan. This column reports research showing that in all three countries, family background is the primary driver of inequality. Particularly in Egypt and Tunisia, public spending on higher education is regressive, with the result that what purports to be a meritocratic and equitable system in reality perpetuates inequality.

In a nutshell

Egypt and Tunisia, which guarantee free public higher education, have the highest inequality of opportunity.

By focusing more of their investments on pre-university education, these countries would ensure that disadvantaged young people have fairer chances to progress, including the potential attainment of higher education.

By reducing inequality early on, countries can reduce inequality in higher education as well.

Countries in the MENA region have made enormous investments in higher education, with most countries providing it for free (Assaad, 2010). Yet while most are moving towards compulsory and universal primary and even secondary education, the opportunity to go to university is available to only a fraction of young people.

Our research indicates that Egypt, Jordan and Tunisia disproportionately provide higher education to those from more advantaged backgrounds (Krafft and Alawode, 2016). Ultimately, these countries are subsidising inequality – not only in access to university, but also in the opportunities for work, income and marriage that are determined by attaining a higher education.

Equal opportunities would only occur if individuals’ attainment of higher education were determined solely by their efforts, not by their backgrounds. Yet background is a substantial driver of inequality in all three countries, with particularly high levels of inequality in Egypt and Tunisia.

Parents’ education in particular is linked to inequality, such that the three countries are subsidising and reinforcing the intergenerational transmission of socio-economic status. Although test scores are supposed to provide access to higher education based on merit, they are themselves affected by background. Furthermore, background affects attainment of higher education even after accounting for test scores, creating a double barrier to higher education for disadvantaged young people.

Free higher education, which is offered in Egypt and Tunisia, is thus a regressive policy that primarily benefits the rich. Jordan, which does not guarantee free higher education, is still subsidising the best off by devoting substantial public funds to higher education. Instead of offering free higher education, Egypt and Tunisia should charge tuition to those who can afford it and offer need-based scholarships, as is done (and ought to be expanded) in Jordan.

Targeted scholarships would help to ensure that students from less advantaged backgrounds receive the aid needed to complete their degree and that all members of society benefit from the higher education system, not only the wealthy. Charging tuition would also provide additional financial resources to the system, allowing for greater investments in earlier stages of education, helping to equalise opportunities to progress through school and potentially go to university.

It is striking that the two countries that guarantee free public higher education – Egypt and Tunisia – have the highest inequality of opportunity. One of the reasons that Jordan may have less inequality of opportunity is that it devotes relatively more public resources to basic education, providing a more equitable path through the system.

While Egypt devotes 32% of its education spending to higher education and Tunisia 27%, the share of education spending allocated for higher education is only 20% in Jordan. The lower share allows relatively more resources to flow to pre-university levels. This funding structure increases the chances that free public education prior to university is adequate to provide later access to university.

Because free public basic education is inadequate to ensure success in contexts such as Egypt, families invest substantially in tutoring (Assaad and Krafft, 2015). The ability to invest in tutoring is one mechanism that contributes to primarily better-off students progressing through the education system and benefiting from free higher education.

To reduce inequality in education and the regressive nature of education investments, all three countries should allocate more of their education budgets towards pre-university education.

But this recommendation runs directly counter to the current policy direction in the region. For example, Egypt’s new constitution mandates that 4% of GDP should be spent on education and 2% on higher education, which means that half of education spending will go to higher education.

This planned resource shift is likely to exacerbate inequality. If, instead, countries were to focus their investments on earlier levels of school, they would ensure that students have fairer chances to progress, including the potential attainment of higher education.

Equalising access to kindergarten and other early educational experiences can also play a critical role in reducing disparities in school-readiness between children from wealthy families and those from poorer families (Krafft, 2015). By reducing inequality early on, countries can reduce inequality in higher education as well.

Further reading

Assaad, Ragui (2010) ‘Equality for All? Egypt’s Free Public Higher Education Policy Breeds Inequality of Opportunity’, ERF Policy Perspective No. 2.

Assaad, Ragui, and Caroline Krafft (2015) ‘Is Free Basic Education in Egypt a Reality or a Myth?’, International Journal of Educational Development 45: 16-30.

Krafft, Caroline (2015) ‘Increasing Educational Attainment in Egypt: The Impact of Early Childhood Care and Education’, Economics of Education Review 46: 127-143.

Krafft, Caroline, and Halimat Alawode (2016) ‘Subsidizing Inequality: Policy and Higher Education in the Middle East and North Africa’, ERF Policy Perspective No. 20.

Most read

Trust in Lebanon’s public institutions: a challenge for the new leadership

Lebanon’s new leadership confronts daunting economic challenges amid geopolitical tensions across the wider region. As this column explains, understanding what has happened over the past decade to citizens’ trust in key public institutions – parliament, the government and the armed forces – will be a crucial part of the policy response.

Qatarisation: playing the long game on workforce nationalisation

As national populations across the Gulf have grown and hydrocarbon reserves declined, most Gulf countries have sought to move to a more sustainable economic model underpinned by raising the share of citizens in the productive private sector. But, as this column explains, Qatar differs from its neighbours in several important ways that could render aggressive workforce nationalization policies counterproductive. In terms of such policies, the country should chart its own path.

Small businesses in the Great Lockdown: lessons for crisis management

Understanding big economic shocks like Covid-19 and how firms respond to them is crucial for mitigating their negative effects and accelerating the post-crisis recovery. This column reports evidence on how small and medium-sized enterprises in Tunisia’s formal business sector adapted to the pandemic and the lockdown – and draws policy lessons for when the next crisis hits.

Economic consequences of the 2003 Bam earthquake in Iran

Over the decades, Iran has faced numerous devastating natural disasters, including the deadly 2003 Bam earthquake. This column reports evidence on the unexpected economic boost in Bam County and its neighbours after the disaster – the result of a variety of factors, including national and international aid, political mobilisation and the region’s cultural significance. Using data on the intensity of night-time lights in a geographical area, the research reveals how disaster recovery may lead to a surprising economic rebound.

The impact of climate change and resource scarcity on conflict in MENA

The interrelationships between climate change, food production, economic instability and violent conflict have become increasingly relevant in recent decades, with climate-induced economic shocks intensifying social and political tensions, particularly in resource-constrained regions like MENA. This column reports new evidence on the impact of climate change on economic and food production outcomes – and how economic stability, agricultural productivity and shared water resources affect conflict. While international aid, economic growth and food security reduce the likelihood of conflict, resource scarcity and shared water basins contribute to high risks of conflict.

Qatar’s pursuit of government excellence: promises and pitfalls

As Qatar seeks to make the transition from a hydrocarbon-based economy to a diversified, knowledge-based economy, ‘government excellence’ has been identified as a key strategic objective. This column reports what government effectiveness means in terms of delivery of public services, digitalisation of services, and control of corruption – and outlines the progress made to date on these development priorities and what the country needs to do to meet its targets.

A Macroeconomic Accounting of Unemployment in Jordan:  Unemployment is mainly an issue for adults and men

Since unemployment rates in Jordan are higher among young people and women than other groups, unemployment is commonly characterised as a youth and gender issue. However, the majority of the country’s unemployed are adults and men. This suggests that unemployment is primarily a macroeconomic issue challenge for the entire labour market. The appropriate response therefore is coordinated fiscal, monetary, structural and institutional policies, while more targeted measures can still benefit specific groups.

The green energy transition: employment pathways for MENA

The potential employment impacts of green and renewable energy in the Middle East and North Africa are multifaceted and promising. As this column explains, embracing renewable energy technologies presents an opportunity for the region to diversify its economy, mitigate the possible negative impacts of digitalisation on existing jobs, reduce its carbon footprint and create significant levels of employment across a variety of sectors. Green energy is not just an environmental imperative but an economic necessity.

Global value chains, wages and skills in MENA countries

The involvement of firms in production across different countries or regions via global value chains (GVCs) can make a significant contribution to economic development, including improved labour market outcomes. This column highlights the gains from GVC participation in terms of employment quality in Egypt, Jordan and Tunisia. Given the high unemployment, sticky wages and wide skill divides that are common in the MENA region, encouraging firms to participate in GVCs is a valuable channel for raising living standards.

Tunisia’s energy transition: the key role of small businesses

Micro, small and medium-sized enterprises (MSMEs) play a critical role in Tunisia’s economy, contributing significantly to GDP and employment. As this column explains, they are also essential for advancing the country’s ambitions to make a successful transition from reliance on fossil fuels to more widespread use of renewable energy sources. A fair distribution of the transition’s benefits across all regions and communities will secure a future where MSMEs thrive as leaders in a prosperous, inclusive and sustainable Tunisia.