Did Trade Liberalization Benefit Female Workers? Evidence on Wage and Employment Effects from Egypt

Egypt has gone through a period of dramatic, albeit slow, economic reform and trade liberalization process, with average tariff rates being reduced by more than 50% over a period of 15 years. This study investigates the extent of gender discrimination in the Egyptian manufacturing sector, and the impact of trade reform on the gender wage gap and on female employment. Results indicate that the gender wage gap, most of which is “unexplained” by worker characteristics, is high and has increased dramatically over time. Increasing trade liberalization has largely had a negative impact on women’s relative wages and on their employment, even after controlling for the public-private distinction as well as the occupational distinction. There is, however, some evidence supporting a favorable impact of increased export intensity on females in the labor market. This has important implications for policy makers attempting to create more equitable labor market conditions in post-revolutionary Egypt.