We propose to evaluate the impact of education/skill mismatch through an extended version of Duncan and Hoffman equation and matching method by using the SWTS conducted by ILO for the main MENA region countries. Our empirical findings reveal that the youth labor market of these countries did not exhibit the same pattern of frictions. We find that Tunisian youth is more affected by over education phenomenon which implies the analysis of the return to education. More particularly, our findings show that concerning Egypt, Jordan and Tunisia, the marginal benefits that individuals expected to obtain at university level are significant. However, the return to education, especially for Tunisia, is largely attenuated when workers are overeducated. These findings suggest that over education introduces a wage penalty, which is more pronounced for Tunisian.
KeywordsEducational MismatchMatchingOver-EducationReturn to EducationWage Penalty
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