Barriers to Employment That Women Face in Egypt

Home , Women in Egypt, Women in the workforce, Youth exclusion

Policy Challenges LOUAY CONSTANT and Considerations IFEANYI EDOCHIE PETER GLICK JEFFREY MARTINI CHANDRA GARBER

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ISBN: 978-1-9774-0464-0 © Copyright 2020 RAND Corporation rticle 12 of the Egyptian Constitution of 2014 enshrines work, stating that it is “. . . a right, a duty, and an honor guaranteed by the state.”1 In addition, the Egypt Vision 2030 Sustainable Development Strategy, which is based on the global Sustainable Development Goals (SDGs), contains the ambitious goals of reducing the unemployment rate to 5 per- A 2 cent, creating a fair society for all, eliminating illiteracy, and raising the quality of education. There have been important strides made in expanding education in Egypt. The country is close to achieving universal primary education and reducing illiteracy; only 12 percent of youth ages 15 to 24 were considered illiterate in 2017.3 However, Egypt faces steep challenges in improving the quality of primary, secondary, and tertiary educational institutions.4 Furthermore, as of 2016, the KEY FINDINGS unemployment rate in Egypt remained at 5 ■ Several forces have exerted a negative effect on employ- 11.4 percent, and, among young people ment growth in Egypt, including a decline in public-sector ages 15 to 24, the unemployment rate was jobs and the limited growth of private-sector jobs to offset around 33 percent.6 that decline, as well as poor preparation of graduates for Overall, young Egyptians continue available private-sector jobs. to struggle to realize their potential and ■ For young women in Egypt, the labor force participation effectively transition to adult roles, and rate has remained persistently low and unemployment has this has been well documented by research remained high. on the topic.7 Young women, in particu- ■ Large gains in educational attainment among women have lar, have experienced limited meaningful not been matched with gains in the workplace. change from efforts to reduce gender inequality in the labor market and improve ■ Key barriers faced by women include a disproportionate 8 burden of childcare and household responsibilities; poor their economic independence. In Egypt working conditions in the private sector; poor enforcement and other Middle East and North Africa of laws barring discrimination and sexual harassment; and (MENA) countries, attitudes held by a high wage gap compared with men in the private sector. both men and women might be changing ■ Women’s struggles to contribute economically are likely toward women’s roles, particularly among to seriously impede progress toward Egypt’s objective of young and more-educated MENA women. improving its economic outlook. Nonetheless, a survey of male and female youth in 2014 revealed that the majority ■ Egyptian officials can take steps now to set the country up to effectively mobilize its full labor force in the future.

RR-2868_CC2019_v15.indd 1 4/14/20 4:07 PM To take advantage of investments in women’s education and anticipate pressures on the labor market that would likely develop as Egypt’s economy grows, Egyptian officials can take steps now to set the country up to effectively mobilize its full labor force in the future.

believe men should have the priority in employment likely develop as Egypt’s economy grows, Egyptian when there are few jobs available.9 Furthermore, officials can take steps now to set the country up to there are important barriers, beyond hiring prefer- effectively mobilize its full labor force in the future. ences for men, that prevent Egyptian women from In this report, we describe barriers to productive participating fully in the labor market. To take employment for young women in Egypt, provide a advantage of investments in women’s education and brief overview of governmental and nongovernmen- anticipate pressures on the labor market that would tal efforts that are currently underway to address these barriers, and put forward some considerations for policy and practice. Our assessment draws on Abbreviations the following: (1) a literature review and analysis of Egypt Arab Republic of Egypt World Bank data and other sources to understand the labor market context for young people, partic- GDP gross domestic product ularly young women; (2) a descriptive analysis of GIZ Deutsche Gesellschaft für Internationale the International Labour Organization’s (ILO’s) Zusammenarbeit most-recent (2014) Egypt School-to-Work Transition Survey (Egypt SWTS)10; and (3) interviews with a ILO International Labour Organization select number of key informants. The interviews with MENA Middle East and North Africa key informants were conducted to contextualize and interpret the findings, identify initiatives currently NCW National Council for Women underway, and highlight remaining challenges. NEET not in employment, education, or training We expect the findings from the study will be relevant to both Egyptian and regional policymak- OECD Organisation for Economic Co-operation ing audiences. Policymakers in the region have been and Development intensely focused on youth since the Arab Spring in SDGs Sustainable Development Goals 2011, which was expected to empower young people socially, economically, and politically, but in most SWTS School-to-Work Transition Survey cases fell far short of that goal. We hope to inform discourse in Egyptian policy circles on the key issues TVET Technical and Vocational Education and facing young women as they transition to adulthood Training and on the types of initiatives and programs that UNDP United Nations Development Programme have shown promise in other contexts. It is important to note that this study is limited in scope, and, in par- USAID United States Agency for International Development ticular, that its intent is not a comprehensive review of government programs that might be addressing

RR-2868_CC2019_v15.indd 2 4/14/20 4:07 PM these issues but rather a synthesis of current findings and considerations moving forward. These findings and considerations can form the basis of hypotheses that can be tested through additional data collection and empirical analyses in a larger-scale study. The report is organized as follows. In the first section, we will discuss key economic indicators related to Egypt, including the macroeconomic situation and the overall employment situation. In the second section, we delve more deeply into the particular employment situation of women in Egypt’s labor market. Next, we examine several barriers that young women face in seeking, securing, and retaining work. Then, we review policies and initiatives in Egypt designed to address these barriers. We conclude with additional steps policymakers can consider to Forces Exerting a Negative Effect on improve women’s engagement with the labor market. Employment Growth in Egypt

Despite the modest economic growth noted ear- Egypt’s Economy and Overall lier, several factors have had a dampening effect on Employment Context employment for both men and women in Egypt. Particularly relevant for our analysis are the decline Egypt’s Economy Has Experienced in public-sector jobs in Egypt and the limited growth Modest Growth of formal private-sector jobs to offset that decline, coupled with poor preparation of Egyptian graduates Over the past 20 years, Egypt has experienced some for available formal private-sector jobs. These issues modest economic growth. Annual growth in gross are discussed in more detail in the following sections. domestic product (GDP) per capita was around 5 percent between 2006 and 2008, before dropping to Decline of Public-Sector Jobs and Limited –0.34 percent by 2011, reflecting the global eco- Growth of Formal Private-Sector Jobs nomic recession (Figure 1, orange line). This trend is roughly in line with fluctuations in the growth The share of employment in Egypt’s public sec- rates of the MENA region and the Organisation for tor has declined over the past ten years, down to Economic Co-operation and Development (OECD), about one-fourth of the share of total employment which both experienced even greater declines during (Figure 2). This trend began in the late 1990s, when the recession. Egypt experienced its steepest eco- public-sector employment was nearly one-third of nomic decline from 2010 to 2011, lagging behind total employment.11 One would hope that the decline the OECD and the MENA region by a couple of in demand from the public sector would be offset years. During the political turmoil that followed with an expansion of opportunities in the formal the January 25, 2011, uprising in Egypt, growth private sector. However, Egypt’s formal private sector was further stunted by a contraction in tourism, a has experienced low growth. There has been much substantial contributor to the Egyptian economy and more substantial growth in irregular or seasonal a key source of foreign currency. This was followed work,12 and World Bank data suggest substantial by a modest recovery and growth that stood at a little growth in the share of women in informal employ- more than 2 percent for 2016. ment, increasing from around 20 percent of total

RR-2868_CC2019_v15.indd 3 4/14/20 4:07 PM FIGURE 1 Gross Domestic Product Growth in Egypt

Egypt OECD members MENA

GDP per capita growth annual percentage

SOURCE World ank, undated

FIGURE 2 Trends in the Share of Public- and Private-Sector Employment in Egypt

. . . . . . . . . .

Private sector Public sector general government

Percentage of total employment and public corporations

SOURCE ILOSTAT, 201

RR-2868_CC2019_v15.indd 4 4/14/20 4:07 PM women in nonagricultural employment in 2008 to measured by gross enrollment ratios has generally 41 percent in 2017.13 risen over the past decade—from around 30 percent In general, both men and women in Egypt tend to 34 percent for men and 27 percent to 35 percent to prefer public-sector jobs. In the SWTS, both young for women.16 One of the explanations for the weak men and women currently enrolled in school over- link between rising education levels and stagnant or whelmingly chose the public sector as their preferred declining labor market engagement is that the quality place of employment (Figure 3). Notably, research on of education provided is low, and thus employers unemployment among young Egyptian women has are reluctant to hire recent graduates.17 Egypt ranks attributed the long durations of unemployment to a poorly on education quality indicators: 109th and willingness to wait for a government job.14 Growth 136th (out of 140) on a rating of ease of finding in the informal sector also means that the jobs that skilled employees and skill sets of graduates, respec- are available are not well paid, and research using tively.18 Employer surveys and analyses of labor force the SWTS finds that unemployed educated youth data reveal that graduates of both secondary and in Egypt prefer to wait for extended periods of postsecondary general and vocational education are time rather than accept a job below their education deemed to lack both technical and “soft” skills in level and reservation wage (i.e., the minimum wage demand by employers.19 This finding was also reiter- required for a particular type of job to be accepted).15 ated in an interview with an employer representative conducted by the RAND research team. Lack of Preparation of Graduates The share of working-age individuals with a vocational education has risen over time. Among Where formal private-sector jobs are available, younger male cohorts (age 25 to 35) in 2012, voca- employers report that they do not find the skills tional secondary school graduates had become the they are looking for among Egyptian graduates. largest group, surpassing general secondary school Enrollment in tertiary or postsecondary institutions male graduates and even lower-educated males.20

FIGURE 3 Job Sector Preferences of Egyptian Youth Enrolled in School (2014)

Males Females

Percentage of youth Public Self- Private NGO or Family Wish not sector employment company international business to work organization

SOURCE Authors calculations of weighted results from ILO, 2014, data NOTE Responses are based on the 2,176 respondents currently enrolled in school in the SWTS NGO nongovernmental organization

RR-2868_CC2019_v15.indd 5 4/14/20 4:07 PM Among young women (ages 15 to 24) in Egypt in particular, the labor force participation rate has hovered around 20 percent over the past 20 years, sometimes falling just below that number (in 2010 and 2011) and at times rising just above it.

Despite demand for graduates with technical and and men in Egypt. In the next section, we examine vocational skills, secondary vocational graduates how women, in particular, fare in the Egyptian labor in Egypt do not fare well in the job market. This market. appears to be because the level of preparation of graduates is not well matched to employer expectations of skills. Research shows that the effects of Egyptian Women and the Labor formal vocational education on employment out- Market comes are indistinguishable from the effects of an absence of formal education, thus suggesting that When we focus the lens on women in Egypt, we see formal vocational education fails to provide students that their labor force participation rate—the share of with job-relevant skills.21 This is further supported the working-age (age 15 and older) female population by other research using the 2014 Egypt SWTS that that is either working or actively looking for work— finds that vocational education is associated with less has remained persistently low, at around 20 percent. likelihood of being employed.22 On the other hand, This rate is close to that of the MENA region as a practical experiences through apprenticeships and whole, whereas around half of working-age women in other work-based learning do provide those skills.23 OECD countries are participating in the labor force. The question remains as to whether there are low Among young women (ages 15 to 24) in Egypt in par- returns on vocational skills in general or whether the ticular, the labor force participation rate has hovered formal vocational education system in the Egyptian around 20 percent over the past 20 years, sometimes context is failing to confer relevant vocational skills.24 falling just below that number (in 2010 and 2011) The findings in this section suggest that for- and at times rising just above it.28 This number is mal qualifications might not signal—or provide— less than half of the labor force participation rate for sufficient or high-quality skills in the Egyptian young women in the OECD, which is 40 to 45 per- labor market.25 Moreover, growth in private-sector cent, but is higher than the average for the MENA demand for labor has primarily been in the informal region as a whole.29 and flexible private sector, where there might be less emphasis and thus less demand on formal qualifica- Unemployment Remains High and tions.26 There have been initiatives to strengthen the Employment Low, Especially Among Technical and Vocational Education and Training Young Women (TVET) system—particularly the hands-on, practical component, which graduates were especially found to Among young women (ages 15 to 24) who are lack—but it has been difficult to bring reforms to any participating in the labor force, unemployment substantial scale because of limited local government is high, estimated to be 43 percent in 2018. It was and private-sector capacity to do so.27 These issues even higher—around 50 percent—during the global affect the employment prospects of both women economic downturn that began in 2008, but then it

RR-2868_CC2019_v15.indd 6 4/14/20 4:07 PM declined beginning in 2013 (Figure 4). Furthermore, Despite seeming improvements in Egypt’s econ- unemployment among young women has been con- omy beginning in 2013, low labor force participation, sistently higher than among young men over the past high unemployment, and low employment-to- 20 years, and higher than the unemployment rate for population ratios for women—and the fact that these all working-age women (15 and older), which was just indicators have remained relatively steady for many above 20 percent (Figure 5). For unemployed women years—suggest that the key impediments to employ- in Egypt, this status tends to become persistent—for ment of young women are deeply structural in example, in 2012, 77 percent of unemployed women nature.31 had been unemployed for two years or more, while only half of unemployed males fit the definition of Educational Gains Have Not Been long-term unemployed.30 Matched with Workplace Gains Another indicator of labor market performance is the employment-to-population ratio, or the ratio of Low labor force participation is particularly troubling individuals employed to all working-age individuals given the large gains in educational attainment (ages 15 and older). For women ages 15 and older, the among Egyptian women, including higher rates of employment-to-population ratio has been just under achievement and completion at every level of educa- 20 percent over the past ten years, and for women tion compared with men. This phenomenon is often ages 15 to 24, the employment-to-population ratio is referred to as the “MENA Paradox” in research on under 15 percent (Figure 6). These rates are similar this topic, and it further highlights the barriers to to MENA figures, but substantially below the figures employment that women face in Egypt.32 for OECD countries, which have ratios of close to 50 percent for women ages 15 and older and close to 40 percent for women ages 15 to 24.

FIGURE 4 Low Female Labor Force Participation

Egypt (ages 15 and older) Egypt (ages 15 to 24) 60 MENA (ages 15 to 24) MENA (ages 15 and older) OECD members (ages 15 and older) OECD members (ages 15 to 24)

20 Labor force participation rate (percentage of women ages 15 to 24 and older) 10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SOURCE: World Bank, undated.

7 FIGURE 5 Unemployment of Young (Ages 15 to 24) and Working-Age (Ages 15 and Older) Women and Men in Egypt (Modeled International Labour Organization Estimate)

Egypt women ages to Egypt women ages and older Egypt men ages to Egypt men ages and older

of labor force

Unemployment rate percentage

SOURCE World ank, undated

FIGURE 6 Employment-to-Population Ratio of Women in Egypt, MENA, and OECD

Egypt ages and older Egypt ages to MENA ages and older MENA ages to OECD members ages and older OECD members ages to

of women ages and older to

Employment-to-population ratio percentage

SOURCE World ank, undated

RR-2868_CC2019_v15.indd 8 4/14/20 4:07 PM Decline of Public-Sector Jobs than half of all young women ages 18 to 24 that are Disproportionately Affects Women, new workers (those who began their first job in the Especially More-Educated Women previous six months) report the public sector as their first job.33 In the 2014 SWTS, close to 25 percent of With respect to occupation, young women in employed women, compared with 6 percent of men, Egypt tend to study certain subjects that prepare report working in the government sector. them for careers in education, health, and public According to the World Bank, during the decade administration—hence for largely public-sector of 2000–2010, in which there was robust economic employment. Jobs in these sectors tend to be fairly growth in Egypt, there was actually a decline in labor stable and have good working conditions (see the force participation among more-educated young section on preferences for working conditions for women.34 This is partly because occupational and more on this topic), and wages in the public sec- sectoral segregation tend to expose women to the tor are more equitable between men and women. inherent risks associated with lack of job diversifica- Moreover, implementation of anti-discrimination tion. For example, the steady decline in public-sector and anti-sexual harassment policies and implemen- employment in Egypt in the past decade dispro- tation of maternity leave and working hours that are portionately affected women—especially educated reconcilable with family responsibilities are typically women who were employed in the education and characteristics of the public sector. health fields in the public sector. The skills they A World Bank report states that close to 37 per- acquired and the long tenures they tended to spend in cent of employed women in Egypt work in the those jobs did not easily translate into private-sector public sector, and a separate report found that more work.35 This decline in public-sector employment

RR-2868_CC2019_v15.indd 9 4/14/20 4:07 PM took place without commensurate increases in been in the vulnerable work sector rather than the private-sector employment.36 The literature shows public sector and the formal private sector, many that structural barriers might prevent women from women choose to remain unemployed or out of the working in the private sector.37 We discuss these labor force altogether. Notably, women are less likely barriers in more detail later in the report. than employed men in Egypt to hold a job that is considered wage and salaried, according to modeled Vulnerable Employment Is on the Rise ILO estimates (63 percent versus 69 percent in 2018) (see Figure 7).41 In comparison, around 88 percent of Vulnerable employment, defined by scholars who employed women and 82 percent of employed men in have looked at employment trends in Egypt as irregu- OECD countries hold wage or salaried jobs. Research lar (seasonal) or informal employment, employment on the topic finds that 59 percent of women are in without a contract or benefits, or underemploy- public or private formal jobs compared with 36 per- ment, has been growing in Egypt.38 In 1998, around cent of men,42 suggesting that when formal jobs are 16.5 percent of employment was in jobs that could not available, women turn to nonwage work in Egypt. be classified as vulnerable, and this number grew to The lack of formal-sector jobs outside the public 24 percent in 2012.39 Individuals working in these sector, in the face of diminished employment oppor- types of positions might be working fewer hours than tunities in that sector, is likely one of the reasons that they would like and might face unstable employment labor force participation among women has remained and poor working conditions. New labor market persistently low over the past two decades.43 entrants whose first labor market experiences are in these types of employment conditions tend to remain in these positions, making it more difficult to accumulate wealth and transition into adult roles.40 Because new opportunities for work have largely

FIGURE 7 Wage and Salaried Employment by Gender, Egypt and OECD

and salaried jobs OECD members females Egypt females OECD members males Egypt males

Percentage of employed people in wage

SOURCE World ank, undated

RR-2868_CC2019_v15.indd 10 4/14/20 4:07 PM A High Share of Young Women Are Not in Egypt was around 35 percent for women and in Employment, Education, or Training around 20 percent for men, whereas the NEET rates among OECD countries were 16 percent for women Because many young working-age individuals might and 11 percent for men (Figure 8). There has been still be in school, it is important to clarify the share some improvement in Egypt, according to World not in employment, education, or training (NEET) Bank data—NEET rates for young women ages 15 to to better understand the economic status of young 24 decreased from 46 percent in 2012 to 35 percent people.44 Estimates of NEET rates, especially for in 2017, but remained steady for men at 20 percent. women, tend to vary by year and data source. For Nonetheless, overall NEET rates remain high, at example, according to the 2012 SWTS, NEET rates more than twice the rate of OECD countries, and are for youth ages 15 to 29 in Egypt were estimated to especially high for young women. be 9.3 percent for men and 49.5 percent for women Several factors might be contributing to rela- in 2012,45 and 14.8 percent for men and 54.5 percent tively higher NEET rates among women, including for women in 2014.46 Using the Egypt Labor Market lower labor force participation and higher unem- Survey 2012, researcher Mona Amer estimated the ployment among women. High rates of labor market NEET rate for men to be 7.2 percent and for women inactivity, among women in particular, are the major to be 62.7 percent.47 contributor to higher NEET rates. Whether this inac- To allow for a comparison with OECD countries, tivity is because of choice or because of structural we use the World Bank Development Indicators, constraints and deep discouragement remains an which provide the share of youth ages 15 to 24 who important issue to investigate further. fall into the NEET category. In 2017, the NEET rate

FIGURE 8 Share of NEET Youth (15 to 24), by Gender and Year, Egypt and OECD

Percentage of NEET youth

Female youth Male youth Female youth Male youth to to to to Egypt OECD

SOURCE World ank, undated NOTE As of July 201, the most recently available year is 2017

RR-2868_CC2019_v15.indd 11 4/14/20 4:07 PM For a country that is seeking to improve its economic outlook, women’s vastly disproportionate struggles to contribute economically—in terms of high unemployment, low labor force participation, and high NEET— are likely to seriously impede progress toward that objective.

Another factor that contributes to the higher that society is not fully reaping the rewards of its NEET rate among women is lack of education access investments in human capital. Moreover, with Egypt among disadvantaged households. Although edu- spending substantial resources on education, includ- cation enrollment and progression has increased ing tertiary education, the country cannot be said to substantially for women, and even surpassed that be allocating resources in an effective manner if the for men in some respects, this is not the case across biggest recipients of these education benefits are not the socioeconomic spectrum. Girls from the poor- given an opportunity to fully contribute to the coun- est households have a 75 percent chance of entering try’s growth and development. The investments that school and a 43 percent chance of reaching second- are made in female education do result in rewards ary school, compared with an 83 percent chance of that accrue to society in some important dimensions entering school and a 54 percent chance of reaching (in particular, improved child welfare and develop- secondary school for boys from those same house- ment), but they also leave many benefits unrealized holds. In contrast, virtually all boys and girls from because women’s skills are not being deployed in the the most-advantaged households enter primary labor market. school and continue on to secondary school.48 The challenge Egyptian policymakers face is in addressing the situation when female unemploy- Why Is Women’s Low Participation in ment is being caused by deeply rooted structural and Egypt’s Labor Force a Problem? institutionalized barriers. The indicators discussed earlier suggest that in Egypt, young women face per- Despite modest improvements to the economy after sistent structural challenges in securing employment. the 2011 political turmoil and the global recession, Without appropriate policy responses, this problem is the indicators described earlier portray a country bound to persist. As Egypt seeks to grow its economy, that is paying a tremendously high opportunity cost it will need to ensure that it has the workforce to by not effectively using the human capital of half of meet its labor market needs, and that the workforce its youth population. For a country that is seeking to has access to jobs. improve its economic outlook, women’s vastly disproportionate struggles to contribute economically—in terms of high unemployment, low labor force participation, and high NEET—are likely to seriously impede progress toward that objective. For one, it is clear from the combination of women’s growing educational attainment and their low employment

RR-2868_CC2019_v15.indd 12 4/14/20 4:07 PM Obstacles That Prevent women’s private-sector employment. As discussed Egyptian Women from earlier, one factor is skills: private-sector employ- Participating in the Labor Force ers report that they do not find the skills they are looking for among Egyptian graduates. Another is In this section, we explore obstacles—both demand- discrimination. Studies have pointed to the higher side (employers, jobs) and supply-side (labor, skills)— likelihood of women encountering employer discrim- that interact to prevent women in Egypt from ination related to employment, wages, and career reaching their full potential in the labor market. We progression in the private sector, and higher inci- focus primarily on the private sector, given the role dences of workplace sexual harassment in the private of the private sector in leading economic growth and sector relative to the public sector.49 Only recently (in also in light of diminished public-sector employ- 2016) did Egypt pass an anti-sexual harassment in ment. Given these factors, there is a need for Egypt the workplace law.50 Nonetheless, it remains difficult to diversify women’s employment so that it is less to implement labor laws, including wage and benefits heavily concentrated in the public sector and address requirements and anti-discrimination provisions, in women’s historically low participation in the private the private sector. These and other factors are dis- sector. It is important to recognize that low female cussed in more detail in the following subsections. participation in the labor force and specifically in the private sector reflects preferences for some Family-Related Factors Affect Both women (or their families) and constraints for others. Supply and Demand for Female Labor It is also important to consider how preferences for public-sector work are shaped by institutional and Child Rearing and Cost of Childcare, Elderly cultural factors, as we will discuss in the following Care, Other Household Responsibilities subsections. We also note where policies exist that attempt to address obstacles that prevent Egyptian Marriage can act as a constraint to employment of women from working. women in Egypt—research has shown that married Aside from low preferences for private-sector women are close to 30 percent less likely to partic- jobs, research has pointed to other factors limiting ipate in the labor force compared with unmarried

RR-2868_CC2019_v15.indd 13 4/14/20 4:07 PM women.51 Moreover, the effect of marriage on wom- to employment. For example, married women face en’s employment is particularly large with respect to restrictions in such matters as obtaining a passport, the private sector.52 Similar to in many other parts of obtaining a national identity card, and traveling the world, in Egypt the bulk of childcare and elderly outside the home.56 These restrictions, in addition to care responsibilities still tend to fall on women.53 such factors as demands on their time for family and In Egypt, employment status does not change the childcare, could hinder the efforts of married women share of domestic responsibilities that women carry to find and retain employment or advance in a career. out—responsibilities that consume approximately Although Egyptian law stipulates that a woman can 31 hours per week, nearly a full “second shift”— register a business, the restrictions outlined here which is a deterrent to long-term work sustainability could also hinder a married woman’s ability to oper- at the status quo.54 Arranging for childcare can be ate the business,57 in addition to her ability to access complicated, requiring multiple arrangements with financing.58 These factors might also partially explain different relatives, which also acts as a deterrent to the drop in labor force participation as young women consistent work.55 External childcare services are reach marrying age in Egypt. As we examine employ- expensive, and wages might not sufficiently cover ment by age for women over three time periods, those costs to make working a worthwhile endeavor employment rates tend to flatten during ages that from a personal cost-benefit standpoint. Households women are likely to be marrying and forming fam- with traditional roles for men and women might also ilies (in their 20s and 30s). This pattern has become dictate working hours, availability for work-related more pronounced over time, as public-sector jobs travel, and other considerations. decline and fewer women keep their jobs in the private sector after marriage and during family forma- Legal Barriers to Women’s Active tion. For example, employment rates among women Engagement in the Labor Market in their mid- to late-forties, many of whom entered the labor force when there were more public-sector Egyptian women, particularly married women, face jobs available, are notably higher, peaking around several restrictions that actively limit their access

RR-2868_CC2019_v15.indd 14 4/14/20 4:07 PM age 50, before beginning to decline as these women approach retirement age.59

Egyptian Women Generally Prefer Specific Working Conditions and Arrangements

One frequently referenced factor that contributes to an incompatibility between women’s employment and private-sector opportunities is reservation working conditions, or the minimum characteristics of a job that would make it an attractive option for a job seeker. This is akin to reservation working wage, except that it refers to the features or characteristics of jobs rather than wages exclusively.60 In general, women in Egypt and in the MENA region prefer public-sector jobs because they are generally more likely than private-sector jobs to have favorable conditions related to working hours, leave, job security, and social status. Tied to these issues is evidence that suggests many women are concerned about the work environment. Close to half of women in a national household-based survey of around 3,000 women ages 18 to 64 reported encountering problems in the workplace. The most frequently cited problem among that share of women was sexual harassment. This issue was most commonly cited for younger women and those working in urban areas.61 Another study offenses.63 Despite the existence of these laws, how- that employed purposive sampling techniques to ever, there remain issues with privacy for victims of interview women in both public areas and places of sexual harassment and violence, support for victims work found that virtually all respondents reported to report incidents, and investigations of incidents.64 encountering some form of sexual harassment at Poor enforcement of sexual harassment laws and the some point.62 Egypt adheres to several international lack of privacy protections and supports, particularly and national norms and laws that prohibit sexual as they pertain to the private sector, likely further harassment and address prevention of violence deter women from shifting their preferences from against women. Egypt recognizes the 1993 United public-sector to private-sector jobs.65 At the very Nations Declaration on the Elimination of Violence least, these findings reflect negative attitudes toward Against Women. The Egyptian Constitution of women in the workplace, including a lack of accep- 2014 introduced additional rights, including greater tance both by male colleagues of women working in representation in elected and appointed govern- the same environment and by customers of women ment positions and protections from other forms working in outward-facing jobs. All these factors are of violence and discrimination, and a Presidential effectively limiting women’s ability or willingness to Decree in 2014 modified articles of the Criminal work in or enter certain industries.66 Code to include penalties for sexual harassment, to levy fines and imprisonment, and to address repeat

RR-2868_CC2019_v15.indd 15 4/14/20 4:07 PM Lack of Mobility Makes It Difficult for women, but particularly for women, drops steeply Women to Access Work when it requires a 30-km commute or farther.71

Several factors contribute to low mobility among Required Benefits and Anti- women in Egypt. Studies have shown that women Discrimination Laws Are Poorly in Egypt are far less likely compared with men to Enforced in the Private Sector migrate for employment,67 and, while men have had to increase their geographical mobility to access paid As a signatory to the 1981 Convention on the formal work, women have not similarly increased Elimination of All Forms of Discrimination Against their mobility.68 Women also report greater diffi- Women, Egypt is bound by international agreements, culty in commuting long distances compared with and Article 11 of the 2014 Egyptian Constitution pro- the difficulty reported by men, and they report motes gender equality in “civil, political, economic, more-frequent incidences of sexual harassment, theft, social, and cultural” spheres.72 Egyptian law also and pushing or shoving when using public transpor- mandates the granting of up to 90 days of maternity tation.69 Laws to protect women from sexual harass- leave with full pay for women in the private sector ment and violence were a direct response to frequent and up to 120 days for women in the public sector.73 incidents on public transportation, though, as The costs are supposed to be assumed by both the noted above, enforcement of such laws is not robust. government and employers. The law does not stipu- Furthermore, commuting long distances tends to late that returning mothers are guaranteed a position take up a substantial portion of pay, particularly for of equal value. Although it is illegal to dismiss a preg- women in lower-skilled jobs. Because women are less nant woman, in practice there are no provisions or likely to commute long distances to jobs, and formal mechanisms that would explicitly prohibit employer private-sector work tends to be concentrated in met- discrimination in hiring on the basis of gender. For ropolitan areas, women outside those areas are less example, the law does not prohibit employers from likely to accept work in that sector.70 A study found asking job candidates about family status.74 Our that private-sector employment for both men and interviews on this subject suggest that employers do take family status into consideration, particularly the

RR-2868_CC2019_v15.indd 16 4/14/20 4:07 PM likelihood that a female job candidate might decide to start a family in the near future. In addition to the maternity leave provision, employers with 100 or more women in the workplace are required to provide childcare facilities. The requirements under the current law and the costs that would be assumed by employers, combined with weak enforcement of gender discrimination, effectively reduce the incen- tives for employers to hire women.75 In addition to requirements to grant maternity leave and provide childcare, our interviews suggest that some employers perceive women as “more costly and less productive” relative to men, because of the need to create conditions that limit contact with men through separate workspaces and to adapt to restric- public sector but remains large in the private sector.77 tions that women have in terms of travel and freedom One World Bank study estimates that, controlling of movement.76 Efforts to enforce anti-discrimination for such factors as age, education, industry, and laws should be coupled with initiatives that directly occupation, women earn 12 to 14 percent less than address the disincentives that employers might face. men in Egypt, which is comparable with the OECD These might include subsidies or other cost-sharing average of 14 percent,78 although this number reflects measures that reduce the costs to private-sector the inclusion of the relatively equitable Egyptian employers and encourage hiring of women. public sector. In the formal private sector alone, the difference in earnings between men and women Persistent Wage Gaps Might is 20 percent, and studies have found a 40 percent Discourage Women from Pursuing wage differential in the informal private sector.79 Work in the Private Sector The World Bank MENA Development report cites an overall pay gap of 22 percent after accounting for Another potential deterrent for women is low pay a host of factors including education, experience, and the pay gap between men and women, particu- and type of occupation.80 The differences reported larly in the private sector. Estimates of the wage gap here reflect the use of different data sources and vary across studies, although there is convergence on sectors included and the different ranges of years. the conclusion that the gap has gotten smaller in the Nonetheless, the results are broadly consistent in

The law does not stipulate that returning mothers are guaranteed a position of equal value. Although it is illegal to dismiss a pregnant woman, in practice there are no provisions or mechanisms that would explicitly prohibit employer discrimination in hiring on the basis of gender.

RR-2868_CC2019_v15.indd 17 4/14/20 4:07 PM showing that lower earnings and the wage gap might harassment. Furthermore, although labor laws do serve to discourage women from seeking employ- exist in Egypt that are supposed to promote equal ment in the private sector, further reinforcing prefer- and safe working conditions, the reality is that they ences for work in the public sector.81 Moreover, when are not enforced effectively. Below, we examine costly childcare and transportation take up a large policies and programs intended to address many portion of take-home pay, low pay further discour- of the challenges—from both supply and demand ages women from working altogether. perspectives—that women working in Egypt face, Although there have been some efforts over the particularly in the private sector. We examine why years to mobilize multiple agencies, both governmen- these policies are not more effective and what could tal and nongovernmental, to address the issues dis- be done to improve them. We also consider where cussed above, political and economic instability have strengthening regulations might have unintended not been conducive to making substantial progress consequences, such as disincentivizing employ- on this front.82 We discuss these efforts in the next ers from hiring women. Where relevant, we have section. included some lessons from other countries regard- ing effective policies that have been implemented to address similar challenges. Efforts to Address These Challenges Addressing “Supply-Side” Challenges

As noted earlier, obstacles preventing women Maternity Leave from becoming integrated into the private-sector labor force in Egypt include tension between work As discussed in the previous section, Egypt does have and family responsibilities, commuting distance regulations intended to support pregnant women and and other mobility challenges, and fear of sexual those who care for dependents. However, existing

RR-2868_CC2019_v15.indd 18 4/14/20 4:07 PM As noted earlier, obstacles preventing women from becoming integrated into the private-sector labor force in Egypt include tension between work and family responsibilities, commuting distance and other mobility challenges, and fear of sexual harassment.

laws in Egypt that are designed to help working participation in the labor market.85 This also has the women might not be achieving their intended goals advantage of providing employment opportunities in some cases. For example, maternity leave laws, as for women. The evidence on the effects of subsidized they are currently structured, could distort employer childcare on maternal labor supply is mixed, with behavior; being forced to comply with these laws one study finding positive effects on socioeconom- could disincentivize employers from hiring women. ically disadvantaged women,86 and another study, Thus, gender discrimination in hiring could be which used labor force data to examine a national an unintended consequence of these laws. Other policy, finding a modest effect on employment.87 countries have explored ways to address this issue. Thus, although further research is needed on the In Jordan, for example, employee leave programs, effects of investments in early childhood education including maternity leave, are funded through a on maternal labor supply, there is some evidence that payroll tax to which all employees contribute so that targeted childcare supports for socioeconomically an individual firm’s cost of maternity leave is not tied disadvantaged women could have an effect on their to the number of women it hires.83 It is important employment. to recognize that even such solutions as increasing the payroll tax on a formal business might create Transportation Policies inadvertent harm by inducing employers to reduce overall formal employment. The implementation of Efforts to circumvent mobility barriers do exist in such a policy in an Arab country, such as Jordan, Egypt, such as co-locating work settings to places of provides a close lesson for Egypt and demonstrates residence and providing subsidized, gender-separated that such a policy shift is possible, but it also offers transportation options. For example, public trans- lessons to mitigate the potential detrimental impacts portation provides women-only metro cars in on employment. Cairo, and there are well-established examples of women-only transportation (and housing) options Expansion of Early Childhood Education and Subsidizing Childcare

The evidence of the positive effect of high-quality early childhood education on children, families, and society has mounted over the years, and there is significant evidence that supports this investment.84 In addition to the positive effects on children, studies have shown that investments in early childhood education can have positive results for women’s

RR-2868_CC2019_v15.indd 19 4/14/20 4:07 PM Addressing the Shortfalls in Formal Vocational Education and Training

There is some disagreement in the literature on the most-effective means for providing the education and training that employers seek in new labor market entrants and improving overall outcomes for young people. Here, we discuss vocational education because it has been a focus of the literature that has examined labor supply in Egypt and emphasized its poor returns in the labor market.91 These findings, which are supported by research that has examined life-course labor outcomes comparing vocational and general secondary education using interna- in the textile industry.88 These types of accommoda- tional assessment data, are not exclusive to Egypt. tions, if shown to work, could be further encouraged A study finds that vocational secondary school and expanded over time to include other areas and graduates have short-term labor market gains over sectors. Investments in safe and reliable modes of general secondary school graduates but that these transportation have been shown to increase employ- gains erode over the life course as general second- ment of women in other countries, such as Peru.89 ary school graduates are better prepared to acquire new skills through their more academically focused Legal Reform to Address Gender preparation.92 Yet recent rigorous research exploit- Discrimination, Mobility Restrictions, and ing national policy changes suggests that vocational Sexual Harassment Prevention Polices secondary education, when better integrated with and Programs general secondary education, coupled with robust work-based learning experiences and feasible path- As mentioned, many existing laws protecting ways to pursue postsecondary education, could yield Egyptian women from employment discrimination positive outcomes in high-skilled vocational fields.93 have not been effective. The relevant legal and law Although there is little evidence that “engineering” enforcement systems are also not equipped to handle reforms of educational institutions will work,94 there the complexities associated with violations of these is room to consider alternative models for vocational laws.90 Furthermore, mechanisms that implement education that integrates academic preparation, these laws are needed to better reflect the reality of formal work-based learning, and pathways to post- evolving workplace norms and expectations, partic- secondary education, particularly into high-skilled ularly around the areas of equal pay for equal work, technical fields that that are typically in short supply employment discrimination, and zero tolerance and in high demand. for sexual harassment in the workplace. Laws that With respect to existing programs in Egypt effectively constrain women from obtaining for- that attempt to address shortfalls in the vocational mal documentation, traveling, or conducting other education system, effects have been limited. One independent activities need to be reformed so as not example is a youth intervention program called to hinder women from seeking employment or being Tawgih, implemented in TVET institutions, which able to register and operate a business. It is import- included career guidance and counseling services ant to recognize that some of the policies and laws designed by the ILO and Deutsche Gesellschaft für intended to protect women might also simultane- Internationale Zusammenarbeit (GIZ), a German ously disincentivize employment. agency that designs vocational training programs.95 A study reported that Tawgih had placed close to

RR-2868_CC2019_v15.indd 20 4/14/20 4:07 PM 14,000 young women in jobs.96 An evaluation of the intervention found that these types of services do raise awareness, self-confidence, and general preparation for the job search and interview process, but there were no differences in employment status between students who received these services and students who did not.97 There is a need to understand why these programs are not yielding desired effects, whether because of problems in their design or in their implementation or because of broader employer or labor market factors.

Addressing “Demand-Side” Challenges

Programs to Improve the Environment for Investment and Doing Business

Given that future prospects for increasing Egyptian women’s employment will depend on availability of good jobs in the formal private sector, one avenue for increasing opportunities in the private sector is to pursue policies that encourage formalization and, consequently, firm growth. These policies might include streamlining government processes that deal with businesses, including licensing; simplifying and modernizing regulatory requirements; improv- challenging for female entrepreneurs because of ing access to capital and finance; and investing in their limited control over assets for collateral and infrastructure. These policies, some of which might other factors, could be one area of short-term focus,98 take a long time to realize any gains, are potentially though understandably limited in its potential for an important means to improve the long-term pros- large employment creation. pects for employment of women. Easing access to Notably, there have been some efforts to boost finance, which studies have indicated is particularly infrastructure upgrades, and yet more could be

RR-2868_CC2019_v15.indd 21 4/14/20 4:07 PM On a smaller scale, the United States Agency for There is no question International Development (USAID) has invested that, in addition to $23 million since 2015 to promote the growth and competitiveness of small and medium-sized enter- initiatives for young prises that either are women-owned or have the potential to hire substantial numbers of women and women’s economic youth. These efforts focus on improving access and capacity of women and youth to use market informa- empowerment, tion, develop business plans, and acquire financing.102 reforms of the Further Considerations for Egyptian economy are Policymakers and Program necessary to make Implementers Pursuing Macroeconomic Policies to possible a more-robust Promote Near- and Long-Term Growth engagement of women There is no question that, in addition to initiatives for in the labor market. young women’s economic empowerment, reforms of the Egyptian economy are necessary to make possible a more-robust engagement of women in the labor made. For example, the Social Fund for Development, market. Currently, the Egyptian government has a United Nations Development Programme (UNDP) prioritized investments in large-scale infrastructure initiative, has poured $600 million into Egypt since projects (e.g., the new Suez Canal and the new capital 1991 to support initiatives in several areas, including outside the city center). Although these investments infrastructure improvements. These include invest- might have benefits, they are unlikely to bring about ments in health facilities, improvements in potable sustained increases in female labor force participa- water access, and improvements in road infrastruc- tion. For long-term growth, the Egyptian economy ture.99 However, it is unclear whether the initiative needs to diversify, the investment climate needs to has had a measurable impact on the employment be improved, and the policies to remove hurdles prospects of young women. Of the 182 youth-focused to private-sector growth need to be in place. These employment interventions documented in Egypt, need to be coupled with greater political stability and many of which were financed through the Social improvements to security. Nonetheless, it is import- Fund, less than 10 percent specifically targeted young ant to note that Egypt has experienced a period of women.100 Furthermore, most interventions succeed sustained growth in the recent past (2000–2010) only in creating temporary jobs, often in sectors, without substantial improvements in women’s such as construction, that are unlikely to employ a economic participation. Lasting changes to wom- substantial number of young women.101 Efforts to en’s participation in the labor force, therefore, are improve infrastructure that would more specifically predicated on addressing the structural barriers that target women include making information and com- women face and pursuing growth-oriented policies. munications technologies upgrades to call centers, These policies might include, for example, investing which tend to employ women; subsidizing early in infrastructure to improve and expand access to childcare; and building facilities to house childcare transportation, electricity, and broadband internet. centers that will also tend to employ women. These policies could be particularly helpful in sup- porting export-oriented industries.

RR-2868_CC2019_v15.indd 22 4/14/20 4:07 PM Addressing Barriers Facing Institutions Raise Public Awareness That Target Economic Empowerment of Young Women When considering the option to work, households make important calculations that factor in the Current government agencies active in employment opportunity costs, including the costs of child- policy tend to be under-resourced in terms of both care, transportation, and other considerations, and funding and quality of staffing, and they have little whether these would be offset by earnings. There real authority to carry out government policies.103 For are, however, additional considerations, including example, the regional and local employment offices confronting deeply held attitudes and expectations that are overseen by the Ministry of Manpower and about women’s appropriate role in the economy and Migration typically provide very limited services, family. National initiatives to highlight the partici- making it difficult to diffuse new ideas and devel- pation of women in the workforce could be used as opments throughout the country. An evaluation of a mechanism to communicate national priorities on the ILO-run initiative titled “Decent Jobs for Egypt’s the value of women working across various sectors Young People,” which targets young people in agri- in the economy, particularly in areas where there is culture and agribusiness sectors in a select number demand for skills. Some of these efforts are already of rural governorates, recommended measures to underway. Government agencies, such as the NCW, strengthen local institutions to improve implemen- which was established in 2000, and the Ministry of tation of programs; the evaluation noted that local Social Solidarity, which was established in 2005 and institutions were hampered by instability at the targets low-income families, have pursued various national level, lack of resources, and an absence of initiatives with the goal of empowering women eco- focus and direction.104 nomically, socially, and politically. In 2016, the NCW In addition, many of the initiatives and programs, large and small, tend to be siloed within the government entities in charge of them, and there is little incentive for interagency collaboration. National initiatives to Mechanisms to improve coordination across ministries that target the same populations, including the highlight the participation pooling of resources, could ultimately improve the quality and sustainability of those initiatives and pro- of women in the grams. Egypt’s National Council for Women (NCW) and its Ministry of Social Solidarity are in a strong workforce could be position to lead efforts that target young women, used as a mechanism but that might involve multiple government agencies with broader population portfolios. For exam- to communicate national ple, many of the NCW’s efforts intersect with the efforts of Egypt’s Ministries of Trade and Industry priorities on the value of (which supports small- and medium-sized enter- prises); Investment and International Cooperation; women working across Education and Technical Education; Manpower; and Finance; and improved coordination could help scale various sectors in the up and expand the reach of the NCW’s initiatives. economy, particularly in areas where there is demand for skills.

RR-2868_CC2019_v15.indd 23 4/14/20 4:07 PM launched the “Knocking Door Campaign,” reaching out to 100,000 households to raise awareness about family topics, including economic empowerment of women. The NCW continued its efforts in 2017, tying its women’s empowerment strategy to the SDGs and broadcasting public service announcements and communications that have reached the vast majority of Egyptians.105 Egypt should continue to build on its efforts to reach ordinary citizens through its public service announcements and marketing campaigns that extol the benefits of women’s employment. Outreach to important members of the community at all levels could also commence to both inform about and advocate for greater involvement and engagement of women in the labor force and the economic, health, and social benefits this involvement and engagement can bring to the local community. Importantly, these public service announcements should be targeted to men, who play an important role in improving employment prospects for women. Specifically, raising awareness about sexual harassment in the workplace and public places, encouraging men and women to take on an equal share of domestic responsibilities, and promoting equality of opportunity are all objectives that deserve attention as part of the national discourse.

RR-2868_CC2019_v15.indd 24 4/14/20 4:07 PM Notes 11 Ragui Assaad and Caroline Krafft, “The Structure and Evolu- tion of Employment in Egypt: 1998–2012,” Giza, Egypt: Economic 1 International Institute for Democracy and Electoral Assistance, Research Forum, Working Paper 805, November 2013, p. 3. “Egypt’s Constitution of 2014,” Article 12, 2014. 12 Assaad and Krafft, 2013. 2 Nihal El-Megharbel, “Sustainable Development Strategy: Egypt Vision 2030,” PowerPoint presentation for workshop on national 13 World Bank, undated. development strategies and plans for the Middle East and Central 14 Ragui Assaad and Caroline Krafft, “Labor Market Dynamics Asia region, Egypt, October 27, 2015; Egypt Vision 2030, “Sustain- and Youth Unemployment in the Middle East and North Africa: able Development Strategy (SDS): Egypt Vision 2030,” 2016. Evidence from Egypt, Jordan and Tunisia,” Giza, Egypt: The 3 World Bank, “World Development Indicators,” DataBank tool, Economic Research Forum, Working Paper 993, April 2016; Ragui undated; Caroline Krafft, Zea Branson, and Taylor Flak, “What’s Assaad and Caroline Krafft, “Youth Transitions in Egypt: School, the Value of a Degree? Evidence from Egypt, Jordan and Tunisia,” Work, and Family Formation in an Era of Changing Opportuni- Compare: A Journal of Comparative and International Education, ties,” Doha, Qatar: Silatech, Working Paper 14-1, 2014; and Shireen 2019. AlAzzawi and Vladimir Hlasny, “Vulnerable Employment Out- comes of Youth in Egypt and Jordan: Trends and Determinants,” 4 Krafft, Branson, and Flak, 2019; Ragui Assaad, Caroline Krafft, Economic Research Forum, November 30, 2018. and Djavad Salehi-Isfahani, “Does the Type of Higher Education Affect Labor Market Outcomes? Evidence from Egypt and Jor- 15 Ralitza Dimova and Karim Stephan, Inequality of Opportunity dan,” Higher Education, Vol. 75, No. 6, June 2018. and (Unequal) Opportunities in the Youth Labour Market: How Is the Arab World Different? International Labour Office, No. 6, 5 World Bank, undated. October 2016. 6 World Bank, undated. 16 World Bank, undated. 7 Ragui Assaad and Ghada Barsoum, “Youth Exclusion in Egypt: 17 Mona Said, Policies and Interventions on Youth Employment in In Search of ‘Second Chances,’” Middle East Youth Initiative, Egypt, European Training Foundation, 2015a. No. 2, September 2007; Ragui Assaad, Christine Binzel, and May Gadallah, “Transitions to Employment and Marriage Among 18 Klaus Schwab, ed., The Global Competitiveness Report 2018, Young Men in Egypt,” Middle East Development Journal, Vol. 2, Geneva: World Economic Forum, 2018. The 2018 Global Compet- No. 1, 2010; Navtej Dhillon and Tarik Yousef, eds., Generation in itiveness Index collected employer ratings of 1–7 on the skills of Waiting: The Unfulfilled Promise of Young People in the Middle the labor force, including quality of vocational training, skill sets East, Washington, D.C.: Brookings Institution Press, 2009; and of graduates, digital skills among population, and ease of finding Ghada Barsoum, Mohamed Ramadan, and Mona Mostafa, Labour skilled employees, among others. In previous years, information Market Transitions of Young Women and Men in Egypt, No. 16, was collected on ratings of other indicators of skills, including Geneva, Switzerland: International Labour Office, June 2014. quality of math and science education, quality of management schools, and internet access in the schools. 8 Nahla Zeitoun, Women Economic Empowerment Study, Wash- ington, D.C.: International Bank for Reconstruction and Develop- 19 World Bank, Opening Doors: Gender Equality and Development ment/The World Bank, May 2018; United Nations Development in the Middle East and North Africa, Washington, D.C.: Inter- Programme (UNDP), Arab Human Development Report 2016: national Bank for Reconstruction and Development/The World Youth and the Prospects for Human Development in a Changing Bank, 75181, 2013. Reality, New York: United Nations Development Programme, 20 Caroline Krafft, “Is School the Best Route to Skills? Returns Regional Bureau for Arab States (RBAS), 2016. to Vocational School and Vocational Skills in Egypt,” Journal of 9 Colette Salemi and Ali Rashed, “Continuing Conservatism: Development Studies, Vol. 54, No. 7, 2018; Said, 2015a. Gender Attitudes Among Egytian Youth,” in Rania Roushdy 21 Krafft, 2018. and Maia Sieverding, eds., Panel Survey of Young People in Egypt (SYPE) 2014: Generating Evidence for Policy, Programs, and 22 Dimova and Stephan, 2016. Research, Cairo: Population Council, 2015. 23 Krafft, 2018. 10 The Egypt SWTS is a nationally representative survey of 24 Krafft, 2018. Egyptians between the ages of 15 and 29 that gathers information on education and employment experiences. The SWTS was carried 25 Dimova and Stephan, 2016. out in 30 countries between 2012 and 2016 (for more information, 26 Ragui Assaad, Caroline Krafft, and Shaimaa Yassin, “Job see ILO, “School-to-Work Transition Survey (SWTS) Micro Data Creation or Labor Absorption? An Analysis of Private Sector Job Files,” database, 2014).

RR-2868_CC2019_v15.indd 25 4/14/20 4:07 PM Growth in Egypt,” Giza, Egypt: Economic Research Forum, Work- where the incumbents hold explicit (written or oral) or implicit ing Paper 1237, October 2018. employment contracts that give them a basic remuneration that is not directly dependent upon the revenue of the unit for which they 27 Said, 2015a. work.” World Bank, undated. 28 World Bank, undated. 42 Assaad and Krafft, 2015. 29 World Bank, undated. 43 Assaad et al., 2018. 30 Assaad and Krafft, 2016, p. 9. 44 The NEET rate is the measure of the share of youth who are not 31 Ragui Assaad, Rana Hendy, Moundir Lassassi, and Shaimaa working (whether unemployed or out of the labor force) and not Yassin, “Explaining the MENA Paradox: Rising Educational in school or in training out of total youth; Sara Elder, “What Does Attainment, Yet Stagnant Female Labor Force Participation,” NEETs Mean and Why Is the Concept so Easily Misinterpreted?” Bonn, Germany: Institute of Labor Economics (IZA), Discussion International Labour Office, Technical Brief 1, January 2015. Paper 11385, March 2018; World Bank, 2013; Dimova and Stephan, Typically, NEET rates are provided in age ranges of 15 to 24 or 2016. 15 to 29. Unlike measures of unemployment and labor force participation, which are less meaningful for young people because these 32 Assaad et al., 2018; Mona Amer, Transition from Education measures do not factor in individuals who are enrolled in school or to Work: Egypt Country Report, European Training Foundation, training, the NEET rate accounts for individuals who are enrolled January 2007; World Bank, 2013. in school or training. 33 World Bank, 2013; Gloria La Cava, Nihal Elwan, Paul Francis, 45 Elder, 2015. Malika Drissi, Nahla Hassan, Irine Jillson, Niall O’Higgins, Rania Roushdy, and the Population Council research team, Reclaiming 46 International Labour Office, Egypt: SWTS Country Brief, Inter- Their Voice: New Perspectives from Young Women and Men in national Labour Organization, December 2016. Upper Egypt, World Bank, 71674, June 11, 2012. 47 Mona Amer, “Patterns of Labor Market Insertion in Egypt, 34 World Bank, 2013. 1998–2012,” Giza, Egypt: Economic Research Forum, Working Paper 849, October 2014. 35 World Bank, 2013. 48 Ragui Assaad, Djavad Salehi-Isfahani, and Rana Hendy, 36 Assaad et al., 2018; Tara Vishwanath, Gabriela Inchauste, Jacob “Inequality of Opportunity in Educational Attainment in Middle Goldston, Sahar Sajjad Hussain, Nandini Krishnan, and Marc East and North Africa: Evidence from Household Surveys,” Giza, Schiffbauer, Arab Republic of Egypt: More Jobs, Better Jobs: A Pri- Egypt: Economic Research Forum, Working Paper 834, May 2014; ority for Egypt, World Bank, 88447-EG, June 2014. and UNDP, 2016. 37 World Bank, 2013. 49 Assaad, Krafft, and Yassin, 2018; Vishwanath et al., 2014. 38 Ragui Assaad and Caroline Krafft, “The Evolution of Labor 50 World Bank Group, Women, Business and the Law 2019: A Supply and Unemployment in the Egyptian Economy: 1988–2012,” Decade of Reform, Washington, D.C.: International Bank for in Ragui Assaad and Caroline Krafft, eds., The Egyptian Labor Reconstruction and Development/The World Bank, 2019. Market in an Era of Revolution, Oxford: Oxford University Press, 2015; and AlAzzawi and Hlasny, 2018. This line of research pri- 51 Ragui Assaad, Caroline Krafft, and Irene Selwaness, “The marily focuses on the market rather than the extended definition Impact of Early Marriage on Women’s Employment in the Middle of vulnerable employment. The market definition excludes eco- East and North Africa,” Maastricht, Netherlands: Global Labor nomic activities that are primarily for the purposes of household Organization, Discussion Paper 66, January 23, 2017; and World consumption, such as animal husbandry and dairy processing. Bank, 2013, p. 105. Labor force participation rates by marital status The data discussed in this section are similarly focused on the are not readily available. However, OECD data on labor force par- market definition of employment. ticipation by age reveal that, in 2018, labor force participation rates were highest among women ages 35 to 54, at around 74 percent. 39 Assaad and Krafft, 2015; AlAzzawi and Hlasny, 2018, p. 9. Labor force participation was 61 percent for women ages 20 to 24 40 Assaad and Krafft, 2015. and 73 percent for women ages 25 to 34. According to OECD data, the mean age for first marriage among women in 2017 was around 41 These data are derived from the World Bank Development 30, which is in the age range cited above. Notably, we do not see as Indicators. The wage and salaried employment numbers are based drastic a decline in labor force participation for women who reach on estimates from the International Labour Organization Depart- that age in the OECD compared with those in Egypt (See OECD, ment of Statistics (ILOSTAT). Wage and salaried is defined as “OECD Employment and Labour Market Statistics,” 2019b; and follows: “Wage and salaried workers (employees) are those workers OECD, “OECD Family Database,” June 30, 2019c.) who hold the type of jobs defined as ‘paid employment jobs,’

RR-2868_CC2019_v15.indd 26 4/14/20 4:07 PM 52 Assaad, Krafft, and Selwaness, 2017; and Ragui Assaad and 71 Vishwanath et al., 2014, p. 115. Melanie Arntz, “Constrained Geographical Mobility and Gen- 72 Sadek, 2016, p. 4. dered Labor Market Outcomes Under Structural Adjustment: Evidence from Egypt,” World Development, Vol. 33, No. 3, 2005. 73 UNDP, Egypt: Gender Justice & The Law, New York, 2018. A new labor law is under consideration to raise the maternity leave 53 Assaad, Krafft, and Selwaness, 2017; Zeitoun, 2018; Vishwanath entitlement for the private sector to the same amount of time as in et al., 2014, p. 117; World Bank, 2013. the public sector (UNDP, 2018, p. 24). 54 Assaad, Krafft, and Selwaness, 2017. 74 World Bank Group, 2015. 55 Assaad, Krafft, and Selwaness, 2017. 75 UNDP, 2018, p. 24; Zeitoun, 2018. 56 World Bank Group, Women, Business and the Law 2016: Get- 76 World Bank, 2013, p. 4. ting to Equal, Washington, D.C.: International Bank for Recon- struction and Development/The World Bank, 2015; World Bank 77 Mona Said, “Wages and Inequality in the Egyptian Labor Group, Women, Business and the Law 2019: A Decade of Reform, Market in an Era of Financial Crisis and Revolution,” Giza, Egypt: Washington, D.C.: International Bank for Reconstruction and Economic Research Forum, Working Paper 912, May 2015b. Development/The World Bank, 2019. 78 See OECD, “Gender Wage Gap (Indicator),” 2019a. 57 World Bank Group, 2015. 79 Vishwanath et al., 2014, pp. 108–112; Said, 2015b, pp. 5–6. Said, 58 Zeitoun, 2018. 2015b, reports the gender wage gap in the private sector, based on 2012 data, as 40 percent. 59 Assaad and Krafft, 2015, p. 16. This trend can also be seen in the OECD, though the change is modest. The female labor 80 World Bank, 2013, p. 112. force participation rate in the OECD in 2018 was 72.8 percent 81 Vishwanath et al., 2014; World Bank, 2013. for women ages 25 to 34. It rose to 73.9 percent among 35- to 44-year-olds and was 73.7 percent among 45- to 54-year-olds, 82 Embassy of Egypt, “Egypt’s First National Youth Conference: before declining to 55.2 percent among 55- to 64-year-olds (OECD, Fulfilling the Aspirations of the Next Generation,” fact sheet, 2019b). Washington, D.C., 2016; Barsoum, Ramadan, and Mostafa, 2014; and Ministry of Manpower and Migration (MoMM), Interna- 60 Assaad and Krafft, 2015; and Christopher Dougherty, “The tional Labor Organization, Egypt: Youth Employment National Labour Market for Youth in Egypt: Evidence from the 2012 School Action Plan: Summary, Cairo: International Labour Organization, to Work Transition Survey,” Doha, Qatar: Silatech, Working January 2010. Paper 14-2, December 2014. 83 World Bank, 2013. 61 Majed Othman, Tataluaat Al Maraa Al Masriya Baad Thawrat 25 Yanayar [Aspirations of the Egyptian Woman After the January 84 Jill S. Cannon, M. Rebecca Kilburn, Lynn A. Karoly, Teryn 25th Revolution], Baseera, 2013. Mattox, Ashley N. Muchow, and Maya Buenaventura, Investing Early: Taking Stock of Outcomes and Economic Returns from Early 62 Bouthaina El Deeb, Study on Ways and Methods to Eliminate Childhood Programs, Santa Monica, Calif.: RAND Corporation, Sexual Harassment in Egypt: Results/Outcomes and Recommenda- RR-1993-RWJF, 2017. tions Summary, United Nations Women, 2013, p. 6. 85 Elia de la Cruz Toledo, “Universal Preschool and Mothers’ 63 George Sadek, Egypt: Sexual Violence Against Women, The Law Employment,” Journal of Labor Economics, 2015. Library of Congress, October 2016, pp. 2–5. 86 Shelley Clark, Caroline W. Kabiru, Sonia Laszlo, and Stella 64 Sadek, 2016. Muthuri, “The Impact of Childcare on Poor Urban Women’s 65 Zeitoun, 2018. Economic Empowerment in Africa,” Demography, Vol. 56, No. 4, August 2019. 66 Othman, 2013. 87 Leon J. H. Bettendorf, Egbert L. W. Jongen, and Paul Muller, 67 Santiago Herrera and Karim Badr, Internal Migration in Egypt: “Childcare Subsidies and Labour Supply—Evidence from a Large Levels, Determinants, Wages, and the Likelihood of Employment, Dutch Reform,” Labour Economics, Vol. 36, October 2015. Policy Research Working Paper 6166, The World Bank, August 2012; Assaad and Arntz, 2005. 88 Mona Hammam, “Egypt’s Working Women: Textile Workers of Chubra el-Kheima,” Middle East Research and Information Project 68 Assaad and Arntz, 2005. (MERIP) Reports, No. 82, November 1979. 69 Vishwanath et al., 2014; Othman, 2013. 89 Daniel Martinez, Oscar A. Mitnik, Edgar Salgado, Lynn Scholl, 70 Vishwanath et al., 2014. and Patricia Yanez-Pagans, “Connecting to Economic Oppor-

RR-2868_CC2019_v15.indd 27 4/14/20 4:07 PM tunity? The Role of Public Transport in Promoting Women’s Employment in Lima,” Bonn, Germany: Institute of Labor Eco- nomics (IZA), Discussion Paper 12020, December 2018.

90 UNDP, 2016.

91 Krafft, 2018; Assaad, Krafft, and Salehi-Isfahani, 2018.

92 Eric A. Hanushek, Guido Schwerdt, Ludger Woessman, and Lei Zhang, “General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle,” Journal of Human Resources, Vol. 52, No. 1, Winter 2017.

93 Marianne Bertrand, Magne Mogstad, and Jack Mountjoy, “Improving Educational Pathways to Social Mobility: Evidence from Norway’s ‘Reform 94,’” Cambridge, Mass.: National Bureau of Economic Research, Working Paper 25679, March 2019.

94 Assaad, Krafft, and Salehi-Isfahani, 2018.

95 For more information on GIZ, see Deutsche Gesellschaft für Internationale Zusammenarbeit, “Our Services,” undated.

96 Said, 2015a.

97 Deutsche Gesellschaft für Internationale Zusammenarbeit and ILO, An Impact Assessment of Career Guidance Services for Techni- cal School Students, January 2017.

98 Zeitoun, 2018, p. 17.

99 Hala Abou-Ali, Hesham El-Azony, Heba El-Laithy, Jonathan Haughton, and Shahidur R. Khandker, Evaluating the Impact of Egyptian Social Fund for Development Programs, The World Bank, Policy Research Working Paper 4993, Impact Evaluation Series No. 31, July 2009.

100 Said, 2015a, p. 26.

101 Said, 2015a, p. 26.

102 USAID, “Egypt: Economic Growth and Trade,” last updated December 30, 2019.

103 Said, 2015a.

104 International Labour Office, “Decent Jobs for Egypt’s Young People: Tackling the Challenge in Qalyoubia and Menoufia – Final Independent Evaluation,” evaluation summary, International Labour Organization, January 2017.

105 Zeitoun, 2018.

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RR-2868_CC2019_v15.indd 30 4/14/20 4:07 PM USAID—See United States Agency for International Development. Vishwanath, Tara, Gabriela Inchauste, Jacob Goldston, Sahar Sajjad Hussain, Nandini Krishnan, and Marc Schiffbauer, Arab Republic of Egypt: More Jobs, Better Jobs: A Priority for Egypt, World Bank, 88447-EG, June 2014. World Bank, “World Development Indicators,” DataBank tool, undated. As of December 30, 2019: https://databank.worldbank.org/reports. aspx?source=2&series=SL.EMP.WORK.ZS&country=EGY ———, Opening Doors: Gender Equality and Development in the Middle East and North Africa, Washington, D.C.: International Bank for Reconstruction and Development/The World Bank, 75181, 2013. World Bank Group, Women, Business and the Law 2016: Getting to Equal, Washington, D.C.: International Bank for Reconstruction and Development/The World Bank, 2015. As of December 30, 2019: http://pubdocs.worldbank.org/en/810421519921949813/Women- Business-and-the-Law-2016.pdf ———, Women, Business and the Law 2019: A Decade of Reform, Washington, D.C.: International Bank for Reconstruction and Development/The World Bank, 2019. As of December 30, 2019: https://openknowledge.worldbank.org/bitstream/ handle/10986/31327/WBL2019.pdf?sequence=4&isAllowed=y World Bank and International Finance Corporation, Women, Business and the Law 2012: Removing Barriers to Economic Inclusion, Washington, D.C.: The International Bank for Reconstruction and Development/The World Bank, 68024, 2011. Zeitoun, Nahla, Women Economic Empowerment Study, Washington, D.C.: International Bank for Reconstruction and Development/The World Bank, May 2018. As of December 30, 2019: http://documents.worldbank.org/curated/ en/861491551113547855/pdf/134846-WP-PUBLIC-march-2-WB- Women-Study-EN.pdf

RR-2868_CC2019_v15.indd 31 4/14/20 4:07 PM About This Report Acknowledgments

Young Egyptians struggle to further their employ- The authors gratefully acknowledge several individ- ment prospects and contribute economically. Young uals who supported this study and whose insights women, in particular, face substantial inequalities greatly improved the report. The study was awarded in the labor market in terms of opportunities and a seed grant by the Center for Middle East Public wages. In this report, the authors synthesize the Policy (CMEPP), and we thank the director, Dalia research on key constraints to young women’s labor Dassa Kaye, for her support and encouragement force participation and employment in Egypt and throughout the period that this study was under- provide an overview of initiatives attempting to taken. We are also grateful for the support of Robin address these challenges. The report addresses young Meili, associate director of International Programs women’s aspirations and intentions toward work, the at RAND, and Charlie Ries, Vice President, efforts that women who want to work make to find International at RAND. Erin Smith provided excel- and secure jobs, the barriers these women face, cur- lent administrative support during the course of this rent initiatives to address these challenges, and con- research, and Emily Ward edited this document, siderations as policymakers in Egypt seek to improve greatly improving its clarity and prose. upon current policies and programs to target those The research greatly benefited from our inter- underlying structural and institutional barriers. views with experts on Egypt, including represen- tatives of the government, the private sector, and nongovernmental organizations. We also benefited Funding from guidance and feedback provided by fellow RAND colleagues, including Shelly Culbertson, Funding for this research was provided by the gen- Alex Rothenberg, Tadeja Gracner, and Fadia Afashe. erous contributions of the RAND Center for Middle Finally, we are grateful to our two reviewers, Shanthi East Public Policy (CMEPP) Advisory Board. Nataraj, senior economist at RAND, and Caroline Krafft, assistant professor of economics at St. Catherine University. Their close, critical reviews and RAND Center for Middle East constructive feedback helped us vastly improve the Public Policy manuscript.

The research was conducted within CMEPP, part of International Programs at the RAND Corporation. CMEPP brings together analytic excel- lence and regional expertise from across the RAND Corporation to address the most-critical political, social, and economic challenges facing the Middle East today. For more information, visit www.rand. org/cmepp or contact the center director (contact information is provided on the webpage).

RR-2868_CC2019_v15.indd 32 4/14/20 4:07 PM About the Authors

Louay Constant is a senior policy researcher at Jeffrey Martini is a senior Middle East researcher RAND. While at RAND, he has worked on several at RAND, where he works on political and security projects that have examined a variety of social policy issues in the Arab world. He has published research issues, including K–12 education reform, postsec- on Arab Gulf security, Syria stabilization, civil-mil- ondary education and training, and labor markets. itary relations in Egypt, and generational divides Constant’s main research focus areas have been within the Muslim Brotherhood. Martini spent four young people’s school-to-work transition and the years living in the Arab world, including one year in experiences of soon-to-be graduates or recent gradu- Cairo, and holds an M.A. in Arabic studies. ates in seeking further education and employment. Chandra Garber is a senior communications analyst Ifeanyi Edochie is an assistant policy researcher at at RAND. Her background includes work on such RAND and a Ph.D. candidate in policy analysis at the issues as public health policy, gender and minorities, Pardee RAND Graduate School. His research focuses labor policy, sustainability, corporate social respon- on labor market policies as well as data science and sibility, education and training, and conflict and simulation techniques for poverty analysis in devel- security. She has an M.A. in comparative literature oping countries. with an emphasis in critical theory.

Peter Glick is a labor economist with the Millennium Challenge Corporation (MCC). His research has covered topics in employment, education, health, and economic development, with a recent focus on youth employment issues. Prior to his work at MCC, Glick was an economist at RAND. He led RAND’s participation in the Solutions for Youth Employment initiative with the World Bank and other organizations.

RR-2868_CC2019_v15.indd 33 4/14/20 4:07 PM Image credits Page 3: Terry Feuerborn Page 9: Barry Iverson/Alamy Stock Photo Page 13: Dominic Chavez/World Bank Page 14: Design Pics Inc./Alamy Stock Photo Page 15: Christian Kober/Alamy Stock Photo Page 16: Dana Smillie/World Bank Page 17: Andrew Holt/Alamy Stock Photo Page 18: CGutierrez/USAID Page 19: Claudia Wiens/Alamy Stock Photo Page 20: Xinhua/Alamy Stock Photo Page 21: Dominic Chavez/World Bank

RR-2868_CC2019_v15.indd 34 4/14/20 4:07 PM C O R P O R A T I O N

oung women in Egypt face substantial inequalities in the labor market in terms of employment opportunities and wages. Labor force participation of young women is low and unemployment is high. Although education disparities between Egyptian women and men have diminished, women continue to earn less than men and face numerous challenges in finding employment. Furthermore, far more young women than young men are not in employment, education, or training. YThese indicators suggest that young Egyptian women seeking work face persistent structural challenges in securing employment. Key obstacles include the high cost of childcare, the expectation that women carry out the majority of household responsibilities, negative attitudes toward women in the workplace, lack of mobility, legal barriers, persistent wage gaps, sexual harassment in the workplace, and poor enforcement of anti-discrimination laws.

The authors of this report assert that women’s vastly disproportionate struggles to contribute economically are likely to seriously impede improvement of Egypt’s economic outlook. Society is not fully reaping the rewards of its investments in human capital, as evidenced by the combination of women’s growing educational attainment and their low employment. The authors point out that Egypt has allocated resources to expand education access, but has not provided a major beneficiary of this expanded access the opportunity to fully contribute to the country’s growth and development.

In this report, the authors examine the issues that are constraining young women in Egypt in terms of labor force participation and employment, consider governmental and nongovernmental initiatives that are underway to address these issues, and present policy considerations that can build on current efforts to help economically empower young women.

$22.00

ISBN-10 1-9774-0464-2 ISBN-13 978-1-9774-0464-0 www.rand.org 52200

RR-2868-RC 9 781977 404640