Angel-Urdinola, Diego F. and Semlali, Amina (2010): Labor Markets and School-to-Work Transition in Egypt: Diagnostics, Constraints, and Policy Framework.
Download (463kB) | Preview
Analysis in this policy note indicates a rapid deterioration in employment opportunities for young individuals transitioning from school to work in Egypt. Despite substantial improvements in labor market outcomes in recent years (in raising employment and participation and in lowering unemployment), unemployment rates in Egypt remain exceedingly high among youth entering the labor market for the first time. A slow school-to-work transition remains the main reason behind high unemployment rates. Young entrants to the labor market have become more educated than ever before: the share of the working-age-population with university education in Egypt has increased significantly between the years 1998 and 2006 (from 14% to 19% among men and from 9% to 14% among women). However, youth are unable to capitalize the time and resources invested in their education as the labor market is not providing enough good-quality jobs for them. To cope with scarce formal jobs, young-educated workers are opting to work in the informal sector and/or withdraw from the labor force, which is contributing to a deadweight loss of recent investments in education. There are three key factors that seem to explain why school-to-job transition remains low in Egypt: investments in the private sector remain low and capital intensive, new graduates are not equipped with the skills demanded by the private sector, and the public sector still provides incentives for educated individuals (mainly women) to queue for private sector jobs. There are several policy options used in the international context to further enhance the performance of the labor market; such as removing obstacles in regulation, enhancing employability of new entrants, reforming the civil service, and designing targeted programs aiming to boost labor demand.
|Item Type:||MPRA Paper|
|Original Title:||Labor Markets and School-to-Work Transition in Egypt: Diagnostics, Constraints, and Policy Framework|
|Keywords:||Labor markets; Egypt; unemployment; training; labor regulation; school-to-job transition|
|Subjects:||J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General
|Depositing User:||Diego Angel-Urdinola|
|Date Deposited:||27. Dec 2010 11:04|
|Last Modified:||12. Feb 2013 12:17|
Allied Corporation-Egypt (JICA/PVTD). 2006. “Job Opportunity Survey In the Arab Republic of Egypt.” Cairo.
Almeida, R. and Carneiro, P. (2006). Enforcement of Regulation, Informal Labor, Firm Size and Firm Performance. Centre for Economic Policy Research Working Paper No. 5976, London.
Amer. M. 2007. “Transition from Education to Work Egypt Country Report.” European Training Foundation. Turin.
Angel-Urdinola, D; A. Semlali, and S. Brodmann (2010). “Non Public Provision of ALMPs in AMCs: An Inventory of Youth Programs”. SP Working Paper Series. Washington, D.C., World Bank.
Angel-Urdinola, D. and A. Kuddo (2010). Key Characteristics of Employment Regulation in The Middle East and North Africa. SP Working Paper Series No. 1006. World Bank, Washington DC.
Assaad. R. 2009. “Labor Supply, Employment and Unemployment in the Egyptian Economy, 1988-2006.” The Egyptian Labor Market Revisited, pp. 1-52. American University Press. Cairo.
Assaad. R. 2008. “Unemployment and Youth Insertion in the Labor Market in Egypt” The Egyptian Economy, Current Challenges and Future Prospects, chapter 5, pp 133-178. The Egyptian Center for Economic Studies American University Press. Cairo.
Betcherman, G. Daysal, M. and Pages, C. 2007. “Do Employment Subsidies Work? Evidence from Regionally Targeted Subsidies in Turkey”. World Bank. Washington D.C.
Betcherman, G., G. Martin, S. Puerto, R. Friederike, and A Stavreska (2007). “A Review of Interventions to Support Young Workers: Findings of the Youth Employment Inventory”. SP Discussion Paper No. 0713. World Bank, Washington, DC.
Baslevent, C. and O. Özlem. 2003. “Are Married Women in Turkey are more likely to become Added or Discouraged Workers?” Labour 27(3):439–58.
Calmfors, L. (1994). "Active Labor Market Policy and Unemployment - A Framework for the Analysis of Crucial Design Features." OECD Economic Studies No. 22.
Cunningham, W., A. Wuermli and M. L. Sanchez-Puerta (2010). Active Labor Market Policies for Youth. Social Protection and Labor. Washington, D.C., The World Bank.
Daveri F. and G. Tabellini (2000). Unemployment and Taxes: Do taxes affect the rate of unemployment? Economic Policy Vol. 15 Issue 30, pp. 47-104
Dhillon, N., et Al. “Missed by the Boom, Hurt by the Bust Making Markets Work for Young People in the Middle East and North Africa.” The Wolfenshon Center for Development at Brookings. Washington D.C.
Dolan, S. 2006. “‘Chile Grows with You’ Policy Promotes early Childhood Development.” UNICEF.
El-Zanaty and Associates. 2007. “School-to-work transition: Evidence from Egypt.” Employment Policy Papers. ILO, Geneva.
Egyptian National Competitiveness Council. 2009. “Beyond the Financial Crisis: Competitiveness and sustainable Development.” Cairo.
ETF. 2007. “Transition from Education to Work Egypt”. Country Report. Turin.
Galasso, E., M. Ravallion and A. Silvia, 2002. "Assisting the Transition from Workfare to Work: A Randomized Experiment." Policy Research Working Paper. World Bank.
Kluve, J. 2006. "The Effectiveness of European Active Labor Market Policy." IZA Discussion Paper No. 2018.
MIT (Massachusetts Institute of Technology). 2006. “Early Childhood: Education for all, a Great Investment.” Cambridge, MA: MIT Workplace Center.
ILO.2007. “School-to-work transition: Evidence from Egypt”. Employment Policy Papers. International Labour Office. Switzerland
Quintini, G., and S. Martin (2006). “Starting Well or Losing their Way? The Position of Youth in the Labor Market in OECD Countries”. OECD Social, Employment and Migration Working Papers, No. 39, OECD Publishing
Schweinhart. L. 2003. “Benefits, Costs and Explanation of the High Scope Perry Preschool Program.” Meeting of the Society for Research in Child Development. Tampa.
Semlali. A. 2009. “MENA Youth Employability and Job Matching Challenges and Opportunities.” World Bank. Washington D.C.
Shaban. R. (2010) “Egypt: Government Employment and Wage Policy” Washington, D.C., World Bank.
Vermehren. A., et Al. 2006. “Improving Employability for At-Risk Youth.” Youth Development Note, Volume 1, Number 7. World Bank, Washington D.C.
Kamel. M. 2006. “Situation Analysis of Youth Employment in Egypt.” Centre for Project Evaluation and Macroeconomic Analysis, Ministry of International Cooperation. Cairo.
Robalino, D. and L. Sanchez-Puerta. 2008.” Managing Labor Market Risks and Creating Better Jobs: Alternative Designs for Income Protection and Active Labor Market Policies”. Mimeo. World Bank: Washington DC.
Rutkowski, J. (2007). Labor taxes and employment in ECA. Unpublished Manuscript. World Bank, Washington DC.
Traill. S., Wohl. J., et Al. 2003. “The Economic Impact of the Child Care Industry in Minnesota.” National Economic Development and Law Center.Oakland.
UN CEDAW. 2008. “Consideration of reports submitted by States parties under article 18 of the Convention on the Elimination of All Forms of Discrimination against Women Combined sixth and seventh periodic reports of States parties Egypt.” Cairo.
World Development Report. 2007. “Development and the Next Generation”. World Bank. Washington, DC.
World Bank 2008. Egypt Investment Climate Assessment, ICA. Washington, D.C.
World Bank. 2009. “Egypt Investment Climate Assessment 2009: Accelerating Private Enterprise-Led Growth.” Washington, D.C.
World Bank. 2009A. “From Privilege to Competition Unlocking Private-Led Growth in the Middle- East and North Africa.” Washington, D.C.
World Bank. 2010. “Narrowing the Gap. Improving Labor Market Opportunitie for Women in Egypt.” Washington, D.C.
World Bank. 2010. “Female Labor Force Participation in Turkey: Trends, Determinants, and Policy Framework.” Washington, D.C.