IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/708.html
   My bibliography  Save this paper

The Fall and Rise of Earnings and Inequality in Egypt: New Evidence From the ELMPS, 2006

Author

Listed:
  • Mona Said

    () (Economics Department, the American University in Cairo)

Abstract

This paper investigates the distributional and structural developments of real hourly wages and monthly earnings in Egypt in the last two decades on the basis of three nation-wide labor force sample surveys (the 1988 LFSS, the 1998 ELMS and the 2006 ELMPS). The results reveal that after the initial period of real wage erosion and wage compression (1988-98), both real wages and wage inequality started rising again for most groups in Egypt. In 2006, although the overall wage distribution is much wider, median real wages have sufficiently increased such that the proportion of wage workers that can be classified as low-waged has significantly declined in comparison to 1998. In fact, in many ways, the 2006 wage structure very much resembles that of 1988, in terms of the level and dispersion of real wages as well as the percentage of workers with low wages. In other words, after almost twenty years of structural adjustment measures, labor market rewards in Egypt have mostly followed a “Uturn path” of decline followed by recovery and return to pre-adjustment levels. Further analysis of returns to education, sector and gender-based wage differentials indicate that the relative rewards of women have significantly improved compared to the situation in 1998. Finally, compared to 1988, the Egyptian labor market seems much less affected by the legacy of the public sector employment guarantee. Thus, although the government sector remains a haven for groups such as women or vocational school graduates, paying them higher wages than elsewhere, the magnitude of those wage gaps have significantly declined compared to the past. Moreover, rewards to the university level of education are now highest in the private sector, and the government sector has a much more decentralized/dispersed wage structure than in the 1980s.

Suggested Citation

  • Mona Said, 2007. "The Fall and Rise of Earnings and Inequality in Egypt: New Evidence From the ELMPS, 2006," Working Papers 708, Economic Research Forum, revised 01 Jan 2007.
  • Handle: RePEc:erg:wpaper:708
    as

    Download full text from publisher

    File URL: http://erf.org.eg/wp-content/uploads/2016/04/708.pdf
    Download Restriction: no

    File URL: http://bit.ly/2nNZfNx
    Download Restriction: no

    References listed on IDEAS

    as
    1. Desai, Raj M. & Freinkman, Lev & Goldberg, Itzhak, 2005. "Fiscal federalism in rentier regions: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 814-834, December.
    2. Hjort, Jonas, 2006. "Citizen funds and Dutch Disease in developing countries," Resources Policy, Elsevier, vol. 31(3), pages 183-191, September.
    3. Kevin K. Tsui, 2011. "More Oil, Less Democracy: Evidence from Worldwide Crude Oil Discoveries," Economic Journal, Royal Economic Society, vol. 121(551), pages 89-115, March.
    4. Kevin Morrison, 2007. "Natural resources, aid, and democratization: A best-case scenario," Public Choice, Springer, vol. 131(3), pages 365-386, June.
    5. Norman V. Loayza & Romain Rancière & Luis Servén & Jaume Ventura, 2007. "Macroeconomic Volatility and Welfare in Developing Countries: An Introduction," World Bank Economic Review, World Bank Group, vol. 21(3), pages 343-357, October.
    6. Frederick van der Ploeg & Steven Poelhekke, 2009. "Volatility and the natural resource curse," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 727-760, October.
    7. Kolstad, Ivar & Wiig, Arne, 2009. "Is Transparency the Key to Reducing Corruption in Resource-Rich Countries?," World Development, Elsevier, vol. 37(3), pages 521-532, March.
    8. Michael L. Ross, 2004. "What Do We Know about Natural Resources and Civil War?," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 337-356, May.
    9. Kaufmann, Daniel & Bellver, Ana, 2005. "Transparenting Transparency: Intial Empirics and Policy Applications," MPRA Paper 8188, University Library of Munich, Germany.
    10. Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence from a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 679-705.
    11. International Monetary Fund, 2005. "Fiscal Transparency and Economic Outcomes," IMF Working Papers 05/225, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rana HENDY & Chahir ZAKI, 2009. "Rethinking the Redistribution Effects of Trade Liberalization in Egypt : A Microsimulation Analysis," Working Papers 2009-23, Center for Research in Economics and Statistics.
    2. Alvaredo, Facundo & Assouad, Lydia & Piketty, Thomas, 2017. "Measuring inequality in the Middle East 1990-2016: The World's Most Unequal Region?," CEPR Discussion Papers 12405, C.E.P.R. Discussion Papers.
    3. Reham Rizk & Hala Abou-Ali, 2016. "Out of Pocket Education Expenditure and Household Budget: Evidence from Arab Countries," Working Papers 996, Economic Research Forum, revised May 2016.
    4. Zafiris Tzannatos & Ishac Diwan & Joanna Abdel Ahad, 2016. "Rates of Return to Education in Twenty Two Arab Countries: an Update and Comparison Between MENA and the Rest of the World," Working Papers 1007, Economic Research Forum, revised May 2016.
    5. Ahmed Fayez Abdelgouad, 2014. "Labor Law Reforms and Labor Market Performance in Egypt," Working Paper Series in Economics 314, University of Lüneburg, Institute of Economics.
    6. Hala Abou-Ali & Hesham El-Azony & Heba El-Laithy & Jonathan Haughton & Shahid Khandker, 2010. "Evaluating the impact of Egyptian Social Fund for Development programmes," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(4), pages 521-555.
    7. Shireen Al Azzawi, 2010. "The Dynamics of Poverty and Inequality in an Era of Economic Liberalization: The Case of Egypt," Working Papers 539, Economic Research Forum, revised 09 Jan 2010.
    8. Reham Rizk, 2016. "Returns to Education: An Updated Comparison from Arab Countries," Working Papers 986, Economic Research Forum, revised Apr 2016.
    9. Rana Hendy & Chahir Zaki, 2013. "Assessing the Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis," The International Trade Journal, Taylor & Francis Journals, vol. 27(1), pages 63-104, March.
    10. Chahir Zaki, 2014. "On Trade Policies and Wage Disparity: Evidence from Egyptian Microeconomic Data," International Economic Journal, Taylor & Francis Journals, vol. 28(1), pages 37-69, March.
    11. World Bank, 2007. "Arab Republic of Egypt : Poverty Assessment Update, Volume 1. Main Report," World Bank Other Operational Studies 7642, The World Bank.
    12. repec:wsi:medjxx:v:05:y:2013:i:03:n:s179381201350020x is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:708. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sherine Ghoneim). General contact details of provider: http://edirc.repec.org/data/erfaceg.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.