Determinant indicators for labor market efficiency and higher education and training: evidence from Middle East and North Africa countries

  • Received December 15, 2019;
    Accepted February 27, 2020;
    Published March 12, 2020
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ppm.18(1).2020.18
  • Article Info
    Volume 18 2020, Issue #1, pp. 206-218
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This study aims to explore the determinant indicators for the labor market efficiency and the higher education and training factors that can help in increasing the productivity in labor market and the quality in higher education and training, as well as pays attention to important relative indicators to improve the relationship between them. To achieve these aims the canonical correlation analysis is used as a bidirectional technique that allows studying the mutual relationship between two factors by taking advantage of available reports from 2012 to 2018 published by World Economic Forum (WEF).
The results indicate that the extent of staff training, internet access, quality of education, and quality of management schools are the most important indicators in higher education and training and most correlated with labor market efficiency factor. The capacity to attract talent, pay and productivity, cooperation in labor-employer relations, and reliance on professional management are the most important indicators in labor market efficiency and the most correlated with higher education and training factor. The commonality analysis gives interesting results and shows that the explained variance in labor market efficiency and higher education and training depends on common indicators rather than a unique indicator.

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    • Figure 1. Canonical correlation, loading and standardized canonical coefficients for first canonical variates (Xcan1 and Ycan1)
    • Figure 2. Canonical correlation and cross-loading for first canonical variates (Xcan1 and Ycan1)
    • Table 1. Higher education and training and labor market efficiency factors and their indicators
    • Table 2. Results of null hypothesis testing
    • Table 3. Canonical square, eigen, percent and cumulative (Cum)
    • Table 4. Standardized canonical coefficients for higher education and training indicators
    • Table 5. Standardized canonical coefficients for labor market efficiency indicators
    • Table 6. Loading of higher education and training indicators
    • Table 7. Loading of labor market efficiency indicators
    • Table 8. Cross-loading of higher education and training indicators with labor market efficiency canonical variates (Ycan)
    • Table 9. Cross-loading of labor market efficiency indicators with higher education and training canonical variates (Xcan)
    • Table 10. Redundancy for canonical variates Xcan and Ycan
    • Table 11. Partitioning of the variances of canonical variates to unique and common effects based on commonality analysis