IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/474.html
   My bibliography  Save this paper

Education-Occupation Mismatch and the Effect on Wages of Egyptian Workers

Author

Listed:
  • Fatma El-Hamidi

    () (University of Pittsburgh)

Abstract

This study attempts to fill a void in the literature by examining education-occupation mismatches in Egypt. Using the Egypt Labor Market Panel Survey (ELMPS) 2006 and Egypt Labor Market Survey (ELMS) 1998, this paper investigates whether the empirical evidences of studies on over-education and under-education carry over to the private sector of the Egyptian labor market; evaluates the incidence and magnitude of the education-occupation mismatch by gender and by occupational categories; and determines whether the incidence of educational mismatches has increased over time. The main findings are as follows: there is evidence of an education-occupation mismatch in the Egyptian private sector. The incidence has declined from 51% to 42% during the eight year period, and males are more likely to be mismatched than females. The Egyptian labor market has witnessed a drop in the percentage of overeducated workers at the expense of an expansion in the share of under-educated workers. Empirical findings do not support the main stream literature. Returns to overeducation for white collar and blue collar males are higher than those of adequately educated males and are greater in 2006 than in 1998. Females in white collar jobs, both over and undereducated, received higher returns than adequately educated females in 1998, but returns to over-education were higher and returns to under-education were lower than adequate education in 2006. Females in blue collar jobs are being penalized if they are inadequately matched, especially in 2006, and are rewarded less than males. These findings support the job competition model in a labor market with an imperfect information system whereby employers use education as an indicator of the cost of investing in job training. Workers, on the other hand, may accept these jobs while competing for a job.

Suggested Citation

  • Fatma El-Hamidi, 2009. "Education-Occupation Mismatch and the Effect on Wages of Egyptian Workers," Working Papers 474, Economic Research Forum, revised Mar 2009.
  • Handle: RePEc:erg:wpaper:474
    as

    Download full text from publisher

    File URL: http://erf.org.eg/wp-content/uploads/2014/08/474.pdf
    Download Restriction: no

    File URL: http://bit.ly/2msmrPk
    Download Restriction: no

    References listed on IDEAS

    as
    1. Joop Hartog & Pedro Pereira & Jose Vieira, 2001. "Changing returns to education in Portugal during the 1980s and early 1990s: OLS and quantile regression estimators," Applied Economics, Taylor & Francis Journals, vol. 33(8), pages 1021-1037.
    2. Hartog, Joop & Oosterbeek, Hessel, 1988. "Education, allocation and earnings in the Netherlands: 0verschooling?," Economics of Education Review, Elsevier, vol. 7(2), pages 185-194, April.
    3. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
    4. Lena Lindahl & Hakan Regnér, 2005. "College Choice and Subsequent Earnings: Results Using Swedish Sibling Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 437-457, September.
    5. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
    6. Frank, Robert H, 1978. "Why Women Earn Less: The Theory and Estimation of Differential Overqualification," American Economic Review, American Economic Association, vol. 68(3), pages 360-373, June.
    7. Alfonso Alba-Ramírez, 1993. "Mismatch in the Spanish Labor Market: Overeducation?," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 259-278.
    8. McGoldrick, KimMarie & Robst, John, 1996. "Gender Differences in Overeducation: A Test of the Theory of Differential Overqualification," American Economic Review, American Economic Association, vol. 86(2), pages 280-284, May.
    9. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-880, June.
    10. Kiker, B. F. & Santos, Maria C. & de Oliveira, M. Mendes, 1997. "Overeducation and undereducation: Evidence for Portugal," Economics of Education Review, Elsevier, vol. 16(2), pages 111-125, April.
    11. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    12. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
    13. John Robst, 1995. "Career Mobility, Job Match, and Overeducation," Eastern Economic Journal, Eastern Economic Association, vol. 21(4), pages 539-550, Fall.
    14. Amanda Gosling & Stephen Machin & Costas Meghir, 2000. "The Changing Distribution of Male Wages in the U.K," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 635-666.
    15. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
    16. Cohn, Elchanan & Khan, Shahina P., 1995. "The wage effects of overschooling revisited," Labour Economics, Elsevier, vol. 2(1), pages 67-76, March.
    17. Quinn, Michael A. & Rubb, Stephen, 2006. "Mexico's labor market: The importance of education-occupation matching on wages and productivity in developing countries," Economics of Education Review, Elsevier, vol. 25(2), pages 147-156, April.
    18. Cohn, Elchanan & Ng, Ying Chu, 2000. "Incidence and wage effects of overschooling and underschooling in Hong Kong," Economics of Education Review, Elsevier, vol. 19(2), pages 159-168, April.
    19. Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-122, April.
    20. Rubb, S., 2003. "Overeducation in the labor market: a comment and re-analysis of a meta-analysis," Economics of Education Review, Elsevier, vol. 22(6), pages 621-629, December.
    21. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    22. Hersch, Joni, 1991. "Education Match and Job Match," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 140-144, February.
    23. Russell W. Rumberger, 1987. "The Impact of Surplus Schooling on Productivity and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 24-50.
    24. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tareq Sadeq, 2014. "Formal-Informal Gap in Return to Schooling and Penalty to Education-Occupation Mismatch a Comparative Study for Egypt, Jordan, and Palestine," Working Papers 894, Economic Research Forum, revised Dec 2014.
    2. Anda David & Christophe Nordman, 2014. "Skill Mismatch and Migration in Egypt and Tunisia," Working Papers DT/2014/05, DIAL (Développement, Institutions et Mondialisation).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:474. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sherine Ghoneim). General contact details of provider: http://edirc.repec.org/data/erfaceg.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.