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Effects of public sector hiring and compensation policies on the Egyptian labor market (English)

This article examines the combined impact of the employment guarantee for graduates and public sector compensation policies on the Egyptian labor market. Besides contributing to an unsustainable rate of growth in the government labor force, these policies have encouraged queuing for government jobs, contributed to high graduate unemployment rates, and reduced the employment of graduates in the private sector. Despite substantial wage erosion in the public sector in recent years, government wages, when appropriately corrected for observed heterogeneity and sample selection, are on a par with, or higher than, private sector wages, especially for graduates. When combined with the more desirable nonwage aspects of government jobs, these compensation levels explain the attractiveness of public sector employment to graduates. Government pay scales are especially advantageous to female secondary school graduates, who appear to face considerable discrimination in the private sector.

Details

  • Author

    Assaad,Ragui A.

  • Document Date

    1997/01/01

  • Document Type

    Journal Article

  • Report Number

    77236

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    China,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2013/05/14

  • Disclosure Status

    Disclosed

  • Doc Name

    Effects of public sector hiring and compensation policies on the Egyptian labor market

  • Keywords

    agricultural wage;rates of return to education;public sector job;public sector compensation policy;university graduate;vocational secondary;employment guarantee;public sector employment;public sector wage bill;access to higher education;female labor force participation;demand for graduate;wage work;vocational secondary school;government job;secondary school graduate;public sector worker;rate of growth;employment guarantee scheme;higher education institution;human capital model;Labor Market;employment of graduates;private sector employment;private sector wage;private sector worker;graduate unemployment rate;years of schooling;abolition of fee;social insurance coverage;higher education system;bachelor of science;wage equation;local government authority;normal distribution function;commercial technical institute;industrial technical institute;supply of graduate;lifetime job security;proportion of female;asymptotic covariance matrix;public sector labor;labor market outcome;high graduate unemployment;Demand For Education;labor market distortion;cost of employment;female unemployment rate;industrial secondary school;labor market information;vocational secondary graduate;secondary school diploma;public enterprise sector;cost of entry;large metropolitan areas;labor market condition;multivariate normal distribution;human capital characteristics;number of workers;private sector demand;social insurance system;government wage;secondary technical;open unemployment;total employment;literate individual;government sector;female employment;female graduate;wage worker;university education;population census;preparatory school;employment status;household earning;public wage;Public Employment;females age;competitive sector;military service;income effect;legal employment;allocation scheme;budgetary allocation;graduate employment;unknown parameter;health science;selection model;selection rules;econometric model;log wage;pay scale;supply curve;Gender Gap;random sample;vocational track;wage determination;parameter estimate;hourly wage;linear function;wage data;private employment;demand curve;unemployed worker;compensation system;good performance;hazardous work;summary statistic;educational certificate;family enterprise;agricultural sector;white-collar worker;employment scheme;expected wage;private agriculture;individual characteristic;disturbance term;inflation rate;increased demand;university level;market clearing;prevailing wage;simple model;high correlation;death benefit;temporary contract;sample selection;individual decision;egyptian pound;real wage;household headship;legal contract;net earning;industrial specialization;male relative;allocation system;married woman;elderly parent;male wage;average wage;agricultural worker;work force;property income;vocational level;wage structure;educational level;enrollment increase;secondary enrollment;wage erosion;military spending;secondary institution;development path;standard deviation;labor regulation;net growth;oil revenue;budgetary pressure;anecdotal evidence;research assistance;educational opportunity;permanent worker;wage earnings;expected value;female work;census data;dominant employer;standard error;unemployment benefit;empirical analysis;self-employment earnings;empirical estimate;government hiring;private benefit;secondary level;excess supply;employed graduate;vocational school;international standard;private cost;womens work;migration decision;estimation result;selection procedures;educational credential;marital status;married man;income security;marginal productivity;random selection;descriptive statistic;sectoral allocation;wage differential;competitive barrier;

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Citation

Assaad,Ragui A.

Effects of public sector hiring and compensation policies on the Egyptian labor market (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/204811468219305432/Effects-of-public-sector-hiring-and-compensation-policies-on-the-Egyptian-labor-market