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Assessing the Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis

Listed author(s):
  • Rana Hendy
  • Chahir Zaki

This article aims at evaluating the liberalization policies' effects on wage inequality in Egypt. Gender, geographical, and skill dimensions are used to break down labor into eight segments. This article simulates the effect of a reduction of tariffs imposed on imports by 50%. Results show that the effect of trade liberalization policies depends on the characteristics of the individual and the working sector. Thanks to the expansion of textiles, garments, chemicals, and services, inequality decreases for urban and rural skilled men as well as skilled and unskilled women working in urban areas. By contrast, inequality increases among unskilled men and skilled women in rural areas.

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File URL: http://hdl.handle.net/10.1080/08853908.2012.702538
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Article provided by Taylor & Francis Journals in its journal The International Trade Journal.

Volume (Year): 27 (2013)
Issue (Month): 1 (March)
Pages: 63-104

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Handle: RePEc:taf:uitjxx:v:27:y:2013:i:1:p:63-104
DOI: 10.1080/08853908.2012.702538
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  1. Fatma El-Hamidi, 2008. "Trade Liberalization, Gender Segmentation, and Wage Discrimination: Evidence from Egypt," Working Papers 414, Economic Research Forum, revised 06 Jan 2008.
  2. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.
  3. Peter Haan, 2004. "Discrete Choice Labor Supply: Conditional Logit vs. Random Coefficient Models," Discussion Papers of DIW Berlin 394, DIW Berlin, German Institute for Economic Research.
  4. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
  5. Decaluwé, Bernard & Dumont, Jean-Christophe & Savard, Luc, 2000. "Measuring Poverty and Inequality in a Computable General Equilibrium Model," Cahiers de recherche 9926, Université Laval - Département d'économique.
  6. Dorovic, Milutin & Milanovic, Milan & Stevanovic, Simo, 2007. "The Global Vegetable Market," Economics of Agriculture, Institute of Agricultural Economics, vol. 54(2).
  7. Margaret Chitiga & Tonia Kandiero & Ramos Mabugu, 2005. "Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe," Working Papers MPIA 2005-01, PEP-MPIA.
  8. John Cockburn & Erwin Corong & Bernard Decaluwé & Ismaël Fofana & Véronique Robichaud, 2010. "The Gender and Poverty Impacts of Trade Liberalization in Senegal," Cahiers de recherche 1013, CIRPEE.
  9. Vaqar Ahmed & Cathal O’Donoghue, 2005. "Using CGE and Microsimulation Models for Income Distribution Analyses: A Survey," Working Papers 0089, National University of Ireland Galway, Department of Economics, revised 2005.
  10. ., 2007. "Population, Migration, and Globalization," Chapters,in: Ecological Economics and Sustainable Development, Selected Essays of Herman Daly, chapter 22 Edward Elgar Publishing.
  11. ., 2007. "Off-Shoring in the Context of Globalization," Chapters,in: Ecological Economics and Sustainable Development, Selected Essays of Herman Daly, chapter 12 Edward Elgar Publishing.
  12. George J. Borjas & Valerie A. Ramey, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1075-1110.
  13. Nabil Annabi & Fatou Cissé & John Cockburn & Bernard Decaluwé, 2005. "Trade Liberalisation, Growth and Poverty in Senegal: a Dynamic Microsimulation CGE Model Analysis," Working Papers 2005-07, CEPII research center.
  14. Elson, Diane, 1999. "Labor Markets as Gendered Institutions: Equality, Efficiency and Empowerment Issues," World Development, Elsevier, vol. 27(3), pages 611-627, March.
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