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Wage Differentials During Economic Reform and Crisis: Evidence from Egypt and Jordan

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  • Mona Said

    (1] London Middle East Institute, SOAS, London University, Thornhaugh Street, Russell Square, London, WC1H OXG, UK.[2] Department of Economics, School of Business, American University in Cairo, AUC Avenue, P.O. Box 74, New Cairo 11835, Egypt.[3] Economic Research Forum, 21 Sad-Al-Aly Street, Dokki, P.O. Box 12311, Cairo, Egypt.)

Abstract

This paper examines public–private, gender and education dynamics of wage inequality in Egypt and Jordan during a period of economic liberalisation and crises (1989–2009). The results point to two distinct phases in Egypt: an initial one of wage erosion and narrowing pay differentials, and a subsequent phase of recovery of real wages and decompression of the wage structure. Estimates based on data after the onset of the global financial crisis in both countries point to a combination of real pay erosion again, but this time coupled with widening sector pay gaps. High returns to university education for women helped maintain a compressed gender wage differential in Jordan in comparison with Egypt. The paper concludes by drawing implications for inclusionary labour market reforms as Middle East and North African countries recover from the crisis.

Suggested Citation

  • Mona Said, 2012. "Wage Differentials During Economic Reform and Crisis: Evidence from Egypt and Jordan," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(1), pages 65-101, March.
    • Handle: RePEc:pal:compes:v:54:y:2012:i:1:p:65-101
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    Cited by:

    1. David Cobham & Abdallah Zouache, 2015. "Economic Features of the Arab Spring," Working Papers 975, Economic Research Forum, revised Nov 2015.
    2. Paul Cichello & Hala Abou-Ali & Daniela Marotta, 2013. "What happened to real earnings in Egypt, 2008 to 2009?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-38, December.

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