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On The Effects Of Reducing The Government`S Role In The Labour Market: A Stylized Model For Egypt With Some Numerical Policy Examples

Author

Listed:
  • Risager, Ole

    (Department of Economics, Copenhagen Business School)

  • Yang, Chang-Po

    (The World Bank)

Abstract

This paper analyzes the consequences of pursuing a less activist Government employment stabilization policy strategy in Egypt. On the basis of a fairly stylized model we find that a reduction of the Government’s involvement in the economy along with an introduction of mild but binding firing regulations in the private sector may lead to a rise in total employment and to an improvement in Egypt’s trade balance vis-à-vis the rest of the world.

Suggested Citation

  • Risager, Ole & Yang, Chang-Po, 1999. "On The Effects Of Reducing The Government`S Role In The Labour Market: A Stylized Model For Egypt With Some Numerical Policy Examples," Working Papers 03-1999, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:1999_003
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    More about this item

    Keywords

    Uncertain environment; Job security; Countercyclical government intervention with lifetime employment guarantees; Wages; Employment; Labour market; Egypt;
    All these keywords.

    JEL classification:

    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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