Labor Markets and School-to-Work Transition in Egypt : Diagnostics, Constraints, and Policy Framework

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.

Bibliographic Details

Main Authors:	Semlali, Amina, Angel-Urdinola, Diego
Language:	English en_US
Published:	World Bank, Washington, DC 2010-11
Subjects:	ABSENTEEISM, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET POLICIES, ACTIVE LABOR MARKET POLICY, ACTIVE LABOR MARKET PROGRAMS, ATTRITION, CHILD CARE, COLLECTIVE BARGAINING, CONTRIBUTION RATE, CREATING JOBS, DAYCARE FACILITIES, DEADWEIGHT, DEADWEIGHT LOSS, DEVELOPMENT STRATEGIES, DISMISSAL, EARLY CHILDHOOD, EARLY IDENTIFICATION, ECONOMIC CONDITIONS, ECONOMIC GROWTH, ECONOMICS, EMPLOYABILITY, EMPLOYABLE SKILLS, EMPLOYEE, EMPLOYMENT, EMPLOYMENT GENERATION, EMPLOYMENT GROWTH, EMPLOYMENT GUARANTEE, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT OUTCOMES, EMPLOYMENT POLICY, EMPLOYMENT PROTECTION LEGISLATION, EMPLOYMENT RATE, EMPLOYMENT SHARE, EMPLOYMENT STATUS, EMPLOYMENT SUBSIDIES, EMPLOYMENT TRAINING, ENTRY-LEVEL JOBS, EXTERNALITIES, FEMALE EMPLOYMENT, FEMALE LABOR, FEMALE LABOR FORCE, FIGHT AGAINST POVERTY, FINDING JOBS, FIRING COSTS, FIRM PERFORMANCE, FIRM SIZE, FUTURE GENERATIONS, HEALTH INSURANCE, HIGH UNEMPLOYMENT, HIGH UNEMPLOYMENT RATES, HOUSEHOLD INCOME, HUMAN CAPITAL, HUMAN DEVELOPMENT, HUMAN RESOURCE, HUMAN RESOURCE DEVELOPMENT, HUMAN RESOURCES, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INSTITUTIONAL CAPACITY, INVENTORY, INVESTMENTS IN EDUCATION, JOB CREATION, JOB DESTRUCTION, JOB EXPERIENCE, JOB LOSSES, JOB MARKET, JOB OPPORTUNITIES, JOB SEARCH, JOB SEARCH ASSISTANCE, JOB SECURITY, JOB SEEKERS, JOB VACANCIES, JOBS, LABOR COST, LABOR COSTS, LABOR DEMAND, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR INTENSITY, LABOR LAW, LABOR MARKET, LABOR MARKET IMPACT, LABOR MARKET INDICATORS, LABOR MARKET INFORMATION, LABOR MARKET INTERMEDIATION, LABOR MARKET NEEDS, LABOR MARKET OUTCOMES, LABOR MARKET PROGRAM, LABOR MARKET REFORM, LABOR MARKET REFORMS, LABOR MARKET REGULATIONS, LABOR MARKET RIGIDITIES, LABOR MARKET RIGIDITY, LABOR MARKETS, LABOR OFFICES, LABOR REGULATION, LABOR SUPPLY, LABOUR, LABOUR OFFICE, LIFE SKILLS, LOCAL EMPLOYERS, LOCAL EMPLOYMENT OFFICES, LOCAL LABOR OFFICES, MANPOWER, MATHEMATICS, MOTHER, NET EMPLOYMENT, NET JOB CREATION, OCCUPATION, ON-THE-JOB TRAINING, PAYROLL TAX, PERFORMANCE INDICATORS, PERFORMANCE MANAGEMENT, PERFORMANCE MONITORING, POLICY FRAMEWORK, POLITICAL ECONOMY, POPULATION COUNCIL, PRIMARY EDUCATION, PRIVATE ENTERPRISE, PRIVATE FIRMS, PRIVATE INSTITUTIONS, PRIVATE PARTNERSHIPS, PRIVATE SECTOR, PRIVATE SECTOR INVOLVEMENT, PRIVATE SECTOR JOBS, PRIVATE SECTORS, PRIVATE TRAINING, PRIVATE TRAINING INSTITUTIONS, PRODUCTIVE EMPLOYMENT, PRODUCTIVITY, PROGRAM COMPLETION, PROGRAM CONTENT, PROGRAM COSTS, PROGRESS, PUBLIC EMPLOYMENT, PUBLIC EMPLOYMENT SERVICES, PUBLIC SECTOR EMPLOYMENT, PUBLIC SECTOR JOBS, PUBLIC SERVICE, PUBLIC WORKS, PUBLIC WORKS PROGRAMS, REAL INTEREST RATES, REAL WAGES, RETIREMENT, SAFETY, SAFETY NET, SEASONAL LABOR, SECONDARY EDUCATION, SERVANTS, SERVICE FACILITIES, SERVICE PROVIDERS, SERVICE PROVISION, SERVICE SECTORS, SEVERANCE PAY, SEVERANCE PAYMENTS, SKILLED WORKERS, SKILLS ASSESSMENT, SKILLS DEVELOPMENT, SOCIAL CAPITAL, STABLE JOB, TECHNICAL SKILLS, TEMPORARY EMPLOYMENT, TEMPORARY JOB, TOTAL EMPLOYMENT, TRADE UNIONS, TRAINING CENTER, TRAINING CENTERS, TRAINING COURSES, TRAINING INSTITUTION, TRAINING INSTITUTIONS, TRAINING PROGRAM, TRAINING PROGRAMS, TRAINING PROVIDER, TRAINING PROVIDERS, TRAINING SYSTEM, UNEMPLOYED, UNEMPLOYED PEOPLE, UNEMPLOYED PERSONS, UNEMPLOYED YOUTH, UNEMPLOYMENT, UNEMPLOYMENT INSURANCE, UNEMPLOYMENT INSURANCE BENEFITS, UNEMPLOYMENT RATES, UNEMPLOYMENT SPELLS, UNIVERSITY EDUCATION, VOCATIONAL EDUCATION, VOCATIONAL SCHOOL, VOCATIONAL TRAINING, VOCATIONAL TRAINING PROGRAMS, WAGE DIFFERENTIALS, WAGE POLICY, WAGE RATE, WORK EXPERIENCE, WORKER, WORKERS, WORKING CONDITIONS, YOUNG CHILDREN, YOUNG MOTHERS, YOUNG PEOPLE, YOUNG WOMEN, YOUNG WORKERS, YOUTH EMPLOYMENT, YOUTH LABOR, YOUTH TRAINING, YOUTH TRAINING PROGRAMS, YOUTH UNEMPLOYMENT, YOUTH UNEMPLOYMENT RATES,
Online Access:	http://documents.worldbank.org/curated/en/2010/11/16332888/labor-markets-school-to-work-transition-egypt-diagnostics-constraints-policy-framework https://hdl.handle.net/10986/13050
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