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Induced Wage Effects of Changes in Food Prices in Egypt

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  • Gaurav Datt
  • Jennifer Olmsted

Abstract

The trend in real agricultural wages in Egypt over the two decades since the mid-1970s is well described by an inverted U-shaped curve with a peak around 1985. But the rise and fall of real wages masks a complex dynamic process by which nominal wages adjust in response to changes in food prices. We use governorate-level panel data for 1976-93 to explore the nature of this adjustment process. Our results indicate that nominal wages adjust slowly. There is a significant negative initial impact of rising food prices on real wages, though wages do catch up in the long run.

Suggested Citation

  • Gaurav Datt & Jennifer Olmsted, 2004. "Induced Wage Effects of Changes in Food Prices in Egypt," Journal of Development Studies, Taylor & Francis Journals, vol. 40(4), pages 137-166.
    • Handle: RePEc:taf:jdevst:v:40:y:2004:i:4:p:137-166
    DOI: 10.1080/00220380410001673229
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    References listed on IDEAS

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    1. Adams, Richard H., 2000. "Self-targeted subsidies - the distributional impact of the Egyptian food subsidy system," Policy Research Working Paper Series 2322, The World Bank.
    2. Gaurav Datt & Dean Jolliffe & Manohar Sharma, 2001. "A Profile of Poverty in Egypt," African Development Review, African Development Bank, vol. 13(2), pages 202-237.
    3. Datt, Gaurav & Olmsted, Jennifer, 1998. "Agricultural wages and food prices in Egypt," FCND discussion papers 53, International Food Policy Research Institute (IFPRI).
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    1. Ujjayant Chakravorty & Marie‐Hélène Hubert & Beyza Ural Marchand, 2019. "Food for fuel: The effect of the US biofuel mandate on poverty in India," Quantitative Economics, Econometric Society, vol. 10(3), pages 1153-1193, July.
    2. Banerjee, Lopamudra, 2007. "Effect of Flood on Agricultural Wages in Bangladesh: An Empirical Analysis," World Development, Elsevier, vol. 35(11), pages 1989-2009, November.
    3. Raghbendra Jha & Katsushi S. Imai & Raghav Gaiha, 2014. "Poverty nutrition traps," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 10, pages 246-259, Edward Elgar Publishing.
    4. 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.
    5. Jha, Raghbendra & Gaiha, Raghav & Sharma, Anurag, 2009. "Calorie and Micronutrient Deprivation and Poverty Nutrition Traps in Rural India," World Development, Elsevier, vol. 37(5), pages 982-991, May.

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