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Impact of the minimum wage policy on consumption expenditure and poverty in Egypt

Author

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  • Eman Abd Allah Abd Allah Mohamed
  • Nayera Yehia Solieman Eid

Abstract

Development has not yet achieved its goals in developing countries due to the increase in poverty rates. In October 2013, the Government of Egypt decided to implement the monthly minimum wage policy to allow citizens attain their needs of different expenditure groups thus reduce poverty. The research estimated the monthly wage that allows poor household individuals attain their daily needs of different expenditure groups after the latest increases in prices, and compared it with the monthly minimum wage to find if it helped them move out of poverty. Findings revealed that such policy shall help move 53% of the study households out of poverty, but the rest are threatened to fall in poverty as prices go higher. The research recommended revisiting the monthly minimum wage periodically to match the rising prices to help improve the economic conditions of vulnerable categories for better health and economic performance to achieve development goals.

Suggested Citation

  • Eman Abd Allah Abd Allah Mohamed & Nayera Yehia Solieman Eid, 2018. "Impact of the minimum wage policy on consumption expenditure and poverty in Egypt," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 15(2), pages 166-179.
    • Handle: RePEc:ids:ijecbr:v:15:y:2018:i:2:p:166-179
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