In a nutshell
- Education-occupation mismatch is an issue globally and in Egypt, in particular. Recent data from the 2023 Egypt Labor Market Panel Survey reveals that overeducation was very common among both vocational secondary and university graduates.
- Job satisfaction was lowest among the overeducated group. Overeducation was associated with a wage penalty, as compared to the well-matched group, but undereducation was associated with a wage premium among vocational secondary graduates and with a wage penalty among university graduates.
- The data also highlights the importance of acquiring skills over credentials to effectively address the existing education-occupation mismatch in the Egyptian labor market.
- These results highlight the urgent need for comprehensive multi-stakeholder interventions focusing on both the supply and demand sides of the labor market to address mismatch.
- On the supply side, improving educational outcomes, skill development, and career counseling is vital to better equip workers with the competencies needed for the labor market.
- On the demand side, policymakers should focus on formalizing the large informal sector and on improving job-matching platforms and labor market information systems.
Research Fellows
Rania Roushdy
Associate Professor of Practice, Department of Economics,...
Authors
Nouran ElKhouly
Senior Economic Researcher