Labor Market For University Graduates Economics Essay

delve commercialise For University Graduates Economics EssayFor quite few time, Egypt has suffered chronic un manipulation with the unemployment evaluate h overing during the past decade well above 9 percent. Like slightly(prenominal) other developing countries, the unemployment problem in Egypt is prevalent among university graduates. In 2008, closely 17 percent of Egypts get the picture force had a university academic degree. University graduates, however, compriseed or so one third of the un use dig out versus 2% of illiterates (CAPMAS 2008). The noniceably racy unemployment rates among university graduates represent a heavy drain on the countrys incomparable human and financial resources.Those distortions in the graduates poke market in terms of adroitnesss needed by employers and those offered by workers ar mainly the outcome of draw out policies that fai take to promote economic growth and increase employment. Although, Egypt took a concrete go and adopte d active lug market policies towards the youth, the mis check problem unperturbed exists. Gobbi (2005) diagnosed this phenomenon as follows the existence of poor entropy on the turn over affect needs, it is difficult to cope with dynamics of the attention market, only 5% authoritative guidance from the authority to readiness centers and fin eithery the low quality of the training due to lack of funds, deficit of competent trainers, scarcity of modern equipment and advanced(a) methods, and insufficient assembly line duration. Those distortions heightslights the need to understand the status and imbalances in the university graduates labor markets and appoint appropriate strategies to reduce unemployment and improve the well being and opportunities of the university graduates.Although undivided welf are in Egypt is correlated with university graduation,1 the labor markets for university graduates has not been sufficiently efficient. The inefficiencies are an outcome of t he particular anatomical structure and features of those markets on both the direct and suplly sides. on that point is an extensive body of re attempt literature that examines the main features of the labor markets for university graduates in Egypt. The research suggests that the field of get word classified according to academic surgical incisionhas a signifi whoremongert feat on the labor market for the university graduates. For instance, it is apparent that the medical school, pharmacy and engineering graduates mayon average give better labor market outcomes in comparison with the holders of Bachelor of arts degrees. Moreover, the nature of the university ownership (public, private or abroad) may affect its graduates labor market opportunities and expected lifetime incomes. Further, at that place is an increasing t closedownency towards recruiting graduates from foreign universities/sections. Hence, graduates from Arabic sections in commerce and law for example dont have the prospect to penetrate the labor market. The same applies to faculties that do not generate the compulsory skilled labor for the society like humanities and agriculture (OECD and IBRD-The being Bank 2010).Gender- particularized differencesparticularly on the look at sidehave been discovered to influence the labor market decisivenesss and potentials for the university graduates leading to unequivocal male dominance. This is manifested by the staggering 71 percent representation of males in the total subjugate of employed university graduates. Other personal, demographic, spatial and household characteristics influence the graduates labor market decisions importantly, marital status and location of domicil. According to the 1998 and 2006 Egyptian grind Market Surveys, unmarried women experienced faster transition from university-to-work vis--vis married women. Alternatively, university graduates in urban areas represent almost 70 percent of the total calculate of employed university graduates owing to the low number of ponder opportunities suitable for their skills in the coarse region. The rural university graduates admission fee to employment and salary potentials is further curtailed by the high economic monetary values of migration across the rural urban divide chiefly because of the higher cost of urban reallocation.The above characteristics imply that the university graduates labor markets in Egypt are highly segmented. They are in like manner influenced by non-competitive forces, which act as barriers to equitable access to employment opportunities and to fair engross compensations. Hence, personal, clan- and family- found connections and networks, communal norms and opportunist rent-seeking behavior can pay for having a good job and assemble the probability of accessing the labor market.As in m any(prenominal) developing countries, thither is a mismatch amongst Egyptian university graduates labor market realities and its institution s. Moreover, usage Guarantee Scheme established in the 1960s lead to menacing the quality of education at all levels, and the growing number of graduates led to queuing for government jobs (Birdsall and OConnell 1999).Examining the characteristics of in conventional workers in 1998 and 2006 marked the increase in the parcel of land of youth (20-29 eld old) among informal workers. Moreover, the share of university graduates has increased slightly over this stream suggesting that more university graduates are informally employed in 2006 than in 1998 (Wahba 2009).Based on what shown above the Egyptian educational expansion is not translated into higher productivity and income for graduates, instead it induces diminishing returns. The reasons behind that are the shortage of Egypts education policy to efficient-enhancing discipline necessary for enhancing the graduated workers competitiveness in the export market, and the labor market regime and regulations that leads to an increase in the cost of labor and rigidities in the labor market (Birdsall and OConnell 1999). Therefore, it is of paramount interest that all picnicers in the graduates labor market- the government, the university system administrators, employers and graduates themselves- must endeavor to put an end to this vicious circle.The main object of this research is to analyze the structure of the labor market for university graduates in Egypt and suggest pragmatic strategies to increase its efficiency. Because of the statistical deficiencies of the labor market data in Egypt, the proposed research result be based on a innovative stylized dataset for the supply and demand for university graduates. The residue of this proposal is divided as follows.II. ObjectiveThe proposed research aims at communicate the Egyptian decision makers in addressing fundamental policy issues concerning the supply and demand of university graduates and their movements in the labor markets. Consequently, the analysis should be able to improve the decision makers understanding of the several(predicate) factors driving unemployment not only among university graduates but also in the overall economy via fielding the processes and market and non-market institutions involved in the flow of university graduates in and out of disposals, university graduates (mis)match with jobs and the distribution of university graduates across sectors. Importantly, the study go away consider the determination of the wage structure and the relationship of vacancies and unemployment cross diverse sectors and year of graduation. Specifically, the research entrust cover the following main issues.1. abbreviation of the structure of the Egyptian university graduates labor markets. This includes an overview of the relative wage/earnings structure (including all display cases of benefits) and the sources of wage inequality by type of employment, job, gender, enterprise, demographic characteristics, region, and so on The study will aim at examining the university graduates labor supply and demand sides. Hence, the study shall explore the different dimensions of the incentives that graduates haveincluding the various factors that affect their qualification wagesto bid labor services and to offer a specific number of hours of work per week and per year. The study shall differentiate surrounded by the incentives liner men and women separately, which determine the observed choices for the uses of time including the role of wages and job characteristics (stability, private/government, etc.), years of experience, family status, wage differentials by sex, informality, paid/nonpaid jobs, family/personal income, type of enterprise, marital status and other households, community environment, firms and sectoral characteristics.2. The main object of study shall aim at providing a detailed taxonomy of the structure of the demand for Egyptian university graduates. The study will generally aim at identify ing the incentives of different firms and enterprises to pick out graduates and the factors that influence job openings hires. In addition, different elasticities shall be estimated to evaluate the firms years of experience/skill graduates demand mix considering the prevailing relative wage, costs of production and market and non market institutional arrangements. Particular emphasis will be given to government and public sector demand for graduates that is influenced by both socioeconomic and political musings. Finally, the study shall evaluate whether too practically education is being produced relative to the needs of the different employers and whether there is a mismatch between the job characteristics and the graduates qualifications.3. The study will examine the effect and role that grades have to play in the Egyptian university graduates labor market by type and spatial allocation of university and by type of employment private/public/government, formal/informal, temporar y/tenured/seasonal, etc. The study shall consider the effect of grades on job and career prospects when entering the labor market. It will also examine whether or not these effects are transitory and whether they change (positively/negatively) over time. The study, therefore, shall test and analyze the relation between grades and annual wagesper formal and per actual hours of workat different time intervals (years) after graduation to capture the age impact of the university graduates final grades.4. The study shall examine the effect of minimum wage on the number of hours worked and on the structure of the wage distribution across sectors in Egypt way on university graduates. The study will determine the discrepancies in the length of the period needed for the youngest inexperienced vs. the older workers to decide exiting the minimum wage and identify graduates who would be most probably affected. The study shall extend the employment and wage effects of adopting the minimum wag e policy on both the formal and informal sectors. This should provide the decision makers with guidelines for the design of an appropriate minimum wage policy that takes into consideration the profile of minimum wage employees and their productivity.5. The study aims at measuring the intergenerational economic and social mobility among university graduates in Egypt by measuring the degree to which the graduates circumstances at birth, family background and ties with and membership in different communities can affect their employment and wage level. In addition, the study will investigating into how status in the social hierarchy system changes throughout the course of the graduates career based on their own effort. The findings of the study will be employed to analyze the linkages between key socioeconomic variables including education attainment, persons skill and quality of performance, wage rate, job security and stability and equitable access to opportunities. Differences in op portunitiesowing to the individuals own rank within the family/community, place of residence e.g., urban/rural, upper/lower and other relevant socioeconomic and demographic characteristicswill be identified.6. constitution evaluationbased on the findings derived from the studies 1-5to mold policy informative guiding principles and design doable strategies for reducing unemployment and relative incidence of joblessness among Egyptian university graduates, increasing their earning potentials and employment opportunities and promising them better access to the labor markets both at the present time and in the future. The strategies shall be whorl within an amenable format that can be easily apply by the decision makers.III. Data SourcesGraduate surveilSurvey on the labor market outcomes of graduates from the higher education system in Egypt, data will be collected through a multistage stratified random sample. The strata are all the academic departments and the graduation year. T here will be an oversampling for the private schools to deal with their absent in the past.The questionnaire will study some demographic characteristics ,the job situation of graduates, type of the job and duties characteristics, educational requirements for the job, the match between their studies and their graduate job (education-job match), past jobs (jobs history). They were also asked whether they had taken any postgraduate studies or any training programs (training purpose, type of training and the fit cost), and if they had any experience with mobility. To study the effect and role that grades have to play in the Egyptian university graduates labor market, the questionnaire should have question about the cumulative grade that the graduate got on the final year of school. For some cases, when the grade point average will be available, the graduate score will be reborn to have the same grade system. Specific section with detailed questions for graduates who were sluggish an d some other questions about the communities surround the graduates. This survey will be conducted quarterly to capture the seasonality effect.Establishment surveyThe survey sample should represent all establishments in all economy sectors. Multistage stratified sample will be conducted. Some establishment characteristics will be taken into consideration such as the geographic region, public or private establishment and establishment size. Some specific sub surveys could be conducted informal survey and micro-survey for enterprise that has less than 5 employees.The questionnaire will study all things that support different establishments to hire graduates, all the socioeconomic and political considerations that are related to hiring new employees. Some establishments require special training programs, so there will be some questions about the purpose of the training program, the cost, and the places that provide such training. It is important also to ask about the factors that infl uence new job openings. There will be also questions about the annual wages, working days, formal and actual working hours, cost of production and full- and underemployed workers who are paid a wage or salary and some other questions about the communities surround the establishments. The survey will be conducted at the end of the fiscal year.To test the design and check its feasibility, a fly study will be conducted for each of the two surveys.IV. Expected cypherLevelEstimate US $Overall Project Costs human race ResourcesLead EconomistEconomic Expert(S)Statistics Expert(s)Economic queryersStatisticiansConducting the surveySoftware and EquipmentsWorkshops and EeminarsBibliographyAmer, M. 2007.Transition from education to Work. Egypt Country Report. 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