Education is one of the most important types of investment in human capital that creates benefits
eventually. Private returns to education include financial option return, non-financial options and
non-market returns. On the other hand, the social returns to education include economic growth
and non-market social effects. Education has many development goals i.e. it is considered as a
tool of social empowerment and global competitiveness. Moreover, education is the most
significant asset that explains income disparities among individuals. Accordingly, equity in
education leads to equity in income distribution. The main objective of this paper is to estimate
the demand and supply functions for schooling in Egypt using the data of Egypt Labor Market
Panel Survey 2012. It is concluded that, the number of years of schooling and the family
characteristics are the main variables that affect the demand and supply functions of education in
Egypt.