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Understanding the dynamics of household enterprises in Egypt: Birth, death, growth and transformation

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  • Caroline KRAFFT

Abstract

Despite the importance of household enterprises in employment in developing economies, little is known about their creation, survival and growth. This article examines the dynamics of household enterprises, using panel data for the period 1998–2018 in Egypt. The analysis explores the individual, household and enterprise characteristics that contribute to these dynamics. The findings show that high rates of enterprise creation and closure in the household enterprise sector drive employment, more so than dynamics of growth in existing enterprises. Household enterprises may be a fallback or survival strategy for less educated and less privileged workers, but may also provide an opportunity for accumulating wealth.

Suggested Citation

  • Caroline KRAFFT, 2024. "Understanding the dynamics of household enterprises in Egypt: Birth, death, growth and transformation," International Labour Review, International Labour Organization, vol. 163(4), pages 599-630, December.
    • Handle: RePEc:bla:intlab:v:163:y:2024:i:4:p:599-630
    DOI: 10.1111/ilr.12441
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    2. Andras Bodor & Roberta Gatti & Diego F. Angel-Urdinola & Joana Silva, 2014. "Striving for Better Jobs : The Challenge of Informality in the Middle East and North Africa," World Bank Publications - Books, The World Bank Group, number 19905, April.
    3. Krafft,Caroline Gould & Assaad,Ragui A. & Rahman,Khandker Wahedur & Cumanzala,Maakwe, 2020. "How Do Small Formal and Informal Firms in the Arab Republic of Egypt Compare ?," Policy Research Working Paper Series 9423, The World Bank.
    4. Caroline Krafft & Ragui Assaad, 2018. "Do More Productive Firms Pay Workers More? Evidence from Egypt," Working Papers 1222, Economic Research Forum, revised 18 Sep 2018.
    5. David McKenzie & Anna Luisa Paffhausen, 2019. "Small Firm Death in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 645-657, October.
    6. Krafft Caroline & Assaad Ragui & Rahman Khandker Wahedur, 2021. "Introducing the Egypt Labor Market Panel Survey 2018," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-40, January.
    7. Caroline Krafft & Reham Rizk, 2018. "The Promise and Peril of Youth Entrepreneurship in MENA," Working Papers 1257, Economic Research Forum, revised 19 Nov 2018.
    8. Ragui Assaad & Caroline Krafft & Shaimaa Yassin, 2020. "Job creation or labor absorption? An analysis of private sector job growth in Egypt," Middle East Development Journal, Taylor & Francis Journals, vol. 12(2), pages 177-207, July.

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