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Technological Change and its Impact on the Labor Market in Egypt

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  • Badran, Mona Farid

Abstract

The current study aims at analyzing the impact of technological change and innovations on the labor market in Egypt. Using the panel data of Egyptian Labor Market Panel Survey (ELMPS) 1998, 2006, and 2012 as well as the initial year of ELMPS 1988, a quadratic form of equation for employment is estimated and two approaches were applied. The first one is collaborated by applying the Ordinary Least Square (OLS) estimation method and taking the difference between the rounds of the ELMPS database; three regressions were estimated for the following, namely total labor force (males and females), a regression for male workers as well as another regression for female workers on wage and wage squared. The second approach is estimated by applying the panel model techniques using the Fixed Effects Model as well as the Random Effects Model to analyze the impact of technological change on the Egyptian labor market. Results of the study reveal that the impact of technological change on employment is evident in the years 2006 and 2012 causing job polarization in the Egyptian labor market as revealed in the first approach. Moreover, the findings show that in the second approach there exists a J-shaped relationship between employment growth and wage and wage squared as control variables. The present study provides an overview of the related literature; moreover, it addresses and analyzes the impact technological change has on the labor market. Finally, the paper provides policy recommendations for forward-looking labor market policies in Egypt.

Suggested Citation

  • Badran, Mona Farid, 2019. "Technological Change and its Impact on the Labor Market in Egypt," 2nd Europe – Middle East – North African Regional ITS Conference, Aswan 2019: Leveraging Technologies For Growth 201735, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsm19:201735
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    References listed on IDEAS

    as
    1. Mona Badran, 2014. "Young people and the digital divide in Egypt: an empirical study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 223-250, December.
    2. Bode, Eckhardt & Gold, Robert, 2018. "Adult training in the digital age," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-14.
    3. Ragui Assaad & Caroline Krafft, 2013. "The Egypt labor market panel survey: introducing the 2012 round," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-30, December.
    4. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    5. Maarten Goos, 2018. "The impact of technological progress on labour markets: policy challenges," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 34(3), pages 362-375.
    6. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    7. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    technological change; labor market; skills; digital economy; MENA; Fixed Effects Model; Random Effects Model; 3rd Industrial Revolution; 4th Industrial Revolution; Egypt;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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