Youth in Egypt suffer from high rates of unemployment and inactivity. They are also heavily affected by the widespread use of informal employment. This paper addresses the effects of employment transitions on the health of youth in Egypt. It specifically focuses on the effect of temporary and informal employment compared to non-employment on the psychological health of youth. Using data from the Survey of Young People in Egypt for the years 2009 and 2014, I identify the causal effects of various employment transitions on mental health outcomes by estimating a matched difference-in-differences. Results show that the transition from non-employment to employment improves the individual’s mental health in general. There are differences in the magnitude of the effect according to gender and the type of employment where those in informal and temporary employment have lower improvements compared to formal and permanent employment.
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