ABSTRACT
This chapter presents the theoretical background and empirical indicia relating to the inequality–employment–growth triptych and the role of governance. It discusses inequality, employment, and governance in the Middle East and North Africa (MENA) region in order to determine the coordinates of the Arab situation and conduct a feasibility analysis. It introduces the data and the methodology, and analyzes the empirical results and draws some policy implications. Inequality is one of the critical issues facing the MENA region; although measurement problems abound, it is unanimously accepted that inequality has increased even further and that its symptoms are spreading across the region. Inequality is present in all MENA countries, and health and educational disparities are apparent within these countries. The chapter examines the impact of inequality and labor market on economic growth in the MENA region by zooming in on the role of governance, using an econometric methodology to estimate an empirical model.
