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

Listed author(s):
  • Rana Hendy

    ()

    (Université Paris 1 Panthéon-Sorbonne & Paris School of Economics)

  • Chahir Zaki

    ()

    (Faculty of Economics and Political Sciences, Economics Department, Cairo University)

This paper develops a microsimulation analysis to evaluate the impact of trade liberalization policies in Egypt on income redistribution. Our analysis aims at identifying the effects of those measures on redistribution aspects. For this, we rely on a macro – micro approach integrating results obtained from a discrete choice model of labor supply in a Computable General Equilibrium model (CGE). In the empirical work, we use the Egyptian Labor Market and Panel Survey (ELMPS) of 1998 and 2006 as well as the Social Accounting Matrix (SAM) of 2001. This assessment allows us to find out to what extent such macroeconomic policies affect, on the microeconomic level, females poverty, wages and employment opportunities.

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Paper provided by Economic Research Forum in its series Working Papers with number 555.

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Length: 42
Date of creation: 10 Jan 2010
Date of revision: 10 Jan 2010
Publication status: Published by The Economic Research Forum (ERF)
Handle: RePEc:erg:wpaper:555
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  1. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, 07.
  2. 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.
  3. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
  4. Dorovic, Milutin & Milanovic, Milan & Stevanovic, Simo, 2007. "The Global Vegetable Market," Economics of Agriculture, Institute of Agricultural Economics, vol. 54(2).
  5. ., 2007. "Population, Migration, and Globalization," Chapters, in: Ecological Economics and Sustainable Development, Selected Essays of Herman Daly, chapter 22 Edward Elgar Publishing.
  6. ., 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.
  7. 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.
  8. 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.
  9. 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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