Human Capital, Labor Market Frictions And Migration In Egypt

Improving education is of great importance to the public. It seems that a well-targeted capital injection aimed at improving educational facilities would positively affect educational outcomes within Egyptian education system. The over-centralization of authority in Egypt’s educational system is one of the main obstacles to reform. Accordingly, Egypt should take planned and transparent steps to achieve a more effective balance between institutional self-regulation and overall public control of the structure, quality and cost of its education system. The main challenges related to the employment and labor market can be summarized in some aspects, for example, the job creation has been one of the most noticeable challenges facing Egypt in the past decade, economic performance has been varied heavily during the past years but even in periods of high growth, the employment has not been strong enough to absorb new labor market entrants, the increase in productivity levels has been minimal in Egypt and the increase in the informal sector especially for females has been significant. Furthermore, the main challenges of youth employment are that, the education, training and skills mismatches between jobseekers and jobs available have slowed down employment. The main action plans to improve employment in Egypt include, employment-intensive investment policies and programs, skills development programs, well targeted job-placement subsidies and encouraging entrepreneurship.