Skill Mismatch, Nepotism, Job Satisfaction, and Young Females in the MENA Region

Abstract

Skills utilization is an important factor affecting labor productivity and job satisfaction. This paper examines the effects of skills mismatch, nepotism, and gender discrimination on wages and job satisfaction in MENA workplaces. Gender discrimination implies social costs for firms due to higher turnover rates and lower retention levels. Young females suffer disproportionality from this than their male counterparts, resulting in a wider gender gap in the labor market at multiple levels. Therefore, we find that the skill mismatch problem appears to be more significant among specific demographic groups, such as females, immigrants, and ethnic minorities; it is also negatively correlated with job satisfaction and wages. We bridge the literature gap on youth skill mismatch’s main determinants, including nepotism, by showing evidence from some developing countries. Given the implied social costs associated with these practices and their impact on the labor market, we have compiled a list of policy recommendations that the government and relevant stakeholders should take to reduce these problems in the workplace. Therefore, we provide a guide to address MENA’s skill mismatch and improve overall job satisfaction.

Labour market dynamics and youth unemployment in the Middle East and North Africa: Evidence from Egypt, Jordan, and Tunisia

“…Active labour market policies (ALMPs) that try to reduce search time in the region have mostly proven ineffective, since unemployed youth typically do not want the available jobs (Groh et al, 2015; McKenzie, 2017). Skill mismatch remains a major issue in the region (Alshyab et al, 2018; Arayssi et al, 2023; David et al, 2014; Dibeh et al, 2019). However, entrepreneurship, soft skills, and similar programs targeting youth with high unemployment rates have also proven to be mostly ineffective, although few of them have been thoroughly evaluated in MENA (Bausch et al, 2017; Broecke, 2013; Groh et al, 2012; Krafft & Rizk, 2021).…”

Skills Mismatch in Entry-level Programmer Positions: Employer Expectations vs. Observations in Lalitpur, Nepal

“…So, in general terms, we can understand the 'skills mismatch' as some kind of difference in skills; a difference of one set of skills from another reference set of skills. The reference here is the set of skills demanded or required by the employers or the labor market (Arayssi et al, 2023). Against these required skills, we compare the available set of skills.…”

“…Rathelot et al (2023) found that the negative effect of skill mismatch in early careers is large and persistent, specifically on wages. According to Arayssi et al (2023), the Middle East and North Africa (MENA) area has substantial young unemployment due to skill mismatch, affecting employees' income, job satisfaction, and career development while lowering the company's productivity as well. Additionally, Jiang & Guo (2022) found that skill mismatch is linked to decreased chances of employment stability, promotion, and job satisfaction.…”