Publication: Labor Markets and School-to-Work Transition in Egypt : Diagnostics, Constraints, and Policy Framework
Date
2010-11
ISSN
Published
2010-11
Author(s)
Abstract
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 enhancing
employability of new entrants, reforming the technical and
vocational training system, and designing targeted programs
aiming to boost labor demand.
Citation
“Angel-Urdinola, Diego; Semlali, Amina. 2010. Labor Markets and School-to-Work Transition in Egypt : Diagnostics, Constraints, and Policy Framework. © World Bank, Washington, DC. http://hdl.handle.net/10986/13050 License: CC BY 3.0 IGO.”