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Does the Type of Higher Education Affect Labor Market Outcomes? A Comparison of Egypt and Jordan

Author

Listed:
  • Ragui Assaad

    (University of Minnesota)

  • Caroline Krafft

    (Department of Economics, St. Catherine University)

  • Djavad Salehi-Isfahani

Abstract

In Egypt and Jordan there is a substantial mismatch between the output of the higher education system and the needs of labor market. Both demand and supply-side factors could be driving this mismatch. This paper tests a key supply-side issue, whether differences in institutional structures and incentives in higher education affect students’ employability. Specifically, does the stronger alignment of incentives in private, as compared to public, higher education generate more employable human capital and better labor market outcomes? The analysis examines the impact of higher education type on numerous outcomes, while controlling for pre-enrollment characteristics. The results demonstrate that supply-side issues and incentives have little impact on labor market outcomes. Family background plays by far the largest role in labor market success. Proposed reforms to higher education often suggest increasing the role of the private sector. Our findings indicate that this approach is unlikely to improve labor market outcomes.

Suggested Citation

  • Ragui Assaad & Caroline Krafft & Djavad Salehi-Isfahani, 2014. "Does the Type of Higher Education Affect Labor Market Outcomes? A Comparison of Egypt and Jordan," Working Papers 826, Economic Research Forum, revised May 2014.
    • Handle: RePEc:erg:wpaper:826
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    References listed on IDEAS

    as
    1. World Bank, 2008. "The Road Not Traveled : Education Reform in the Middle East and North Africa," World Bank Publications - Books, The World Bank Group, number 6303, December.
    2. Ragui Assaad, 2012. "The Structure and Evolution of Employment in Jordan," Working Papers 674, Economic Research Forum, revised 2012.
    3. Ragui Assaad & Eslam Badawy & Caroline Krafft, 2014. "Differences in Pedagogy, Accountability, and Perceptions of Quality by Type of Higher Education in Egypt and Jordan," Working Papers 828, Economic Research Forum, revised May 2014.
    4. Ghada Barsoum & Nader Mryyan, 2014. "Incentives Structure and Accountability in the Jordanian Higher Education System," Working Papers 835, Economic Research Forum, revised Jun 2014.
    5. Nader Mryyan, 2012. "Demographics, Labor Force Participation and Unemployment in Jordan," Working Papers 670, Economic Research Forum, revised 2012.
    6. Djavad Salehi-Isfahani, 2012. "Education, Jobs, and Equity in the Middle East and North Africa," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(4), pages 843-861, December.
    7. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, December.
    8. Jackline Wahba, 2012. "Immigration, Emigration and the Labor Market in Jordan," Working Papers 671, Economic Research Forum, revised 2012.
    9. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Caroline Krafft & Ragui Assaad, 2016. "Inequality of Opportunity in the Labor Market for Higher Education Graduates in Egypt and Jordan," International Economic Association Series, in: Ishac Diwan & Ahmed Galal (ed.), The Middle East Economies in Times of Transition, chapter 5, pages 159-185, Palgrave Macmillan.
    2. Loewe, Markus & Zintl, Tina & Fritzenkötter, Jörn & Gantner, Verena & Kaltenbach, Regina & Pohl, Lena, 2020. "Community effects of cash-for-work programmes in Jordan: Supporting social cohesion, more equitable gender roles and local economic development in contexts of flight and migration," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 103, number 103.
    3. Krafft, Caroline & Elbadawy, Asmaa & Sieverding, Maia, 2019. "Constrained school choice in Egypt," International Journal of Educational Development, Elsevier, vol. 71(C).
    4. Assaad, Ragui & Krafft, Caroline, 2015. "Is free basic education in Egypt a reality or a myth?," International Journal of Educational Development, Elsevier, vol. 45(C), pages 16-30.
    5. Eleonora Bertoni & Giorgio Ricchiuti, 2017. "A Multilevel Analysis of Unemployment in Egypt," LABOUR, CEIS, vol. 31(4), pages 494-514, December.
    6. Mongi Boughzala & Samir Ghazouani & Abdelwahab Ben Hafaiedh, 2016. "Aligning Incentives for Reforming Higher Education in Tunisa," Working Papers 1031, Economic Research Forum, revised Jul 2016.
    7. Quentin T. Wodon & Brooks Evans & Chata Male & Adenike Onagoruwa & Aboudrahyme Savadogo & Ali Yedan, 2016. "Egypt Note," World Bank Publications - Reports 28411, The World Bank Group.
    8. Caroline Krafft, 2016. "Understanding the Dynamics of Household Enterprises in Egypt: Birth, Death, Growth and Transformation," Working Papers 983, Economic Research Forum, revised Mar 2016.
    9. Ragui Assaad & Eslam Badawy & Caroline Krafft, 2014. "Differences in Pedagogy, Accountability, and Perceptions of Quality by Type of Higher Education in Egypt and Jordan," Working Papers 828, Economic Research Forum, revised May 2014.
    10. Ghada Barsoum & Ahmed Rashad, 2018. "Does Private Higher Education Improve Employment Outcomes? Comparative Analysis from Egypt," Public Organization Review, Springer, vol. 18(1), pages 125-142, March.
    11. Krafft, Caroline & Alawode, Halimat, 2018. "Inequality of opportunity in higher education in the Middle East and North Africa," International Journal of Educational Development, Elsevier, vol. 62(C), pages 234-244.
    12. Assaad, Ragui & Krafft, Caroline, 2017. "Excluded Generation: The Growing Challenges of Labor Market Insertion for Egyptian Youth," IZA Discussion Papers 10970, Institute of Labor Economics (IZA).

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