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Agricultural wages and food prices in Egypt

Author

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  • Datt, Gaurav
  • Olmsted, Jennifer

Abstract

The trend in real agricultural wages in Egypt is described well 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 1976–1993 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

  • Datt, Gaurav & Olmsted, Jennifer, 1998. "Agricultural wages and food prices in Egypt," FCND discussion papers 53, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:53
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    File URL: http://www.ifpri.org/sites/default/files/publications/dp53.pdf
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    References listed on IDEAS

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    1. Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
    2. Richards, Alan & Martin, Philip, 1983. "Labor Shortages in Egyptian Agriculture," Working Papers 233454, University of California, Davis, Agricultural Development Systems: Egypt Project.
    3. Richards, Alan, 1994. "The Egyptian farm labor market revisited," Journal of Development Economics, Elsevier, vol. 43(2), pages 239-261, April.
    4. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    5. Boyce, James K & Ravallion, Martin, 1991. "A Dynamic Econometric Model of Agricultural Wage Determination in Bangladesh," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(4), pages 361-376, November.
    6. Hansen, Bent, 1969. "Employment and Wages in Rural Egypt," American Economic Review, American Economic Association, vol. 59(3), pages 298-313, June.
    7. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    8. Raaj Kumar Sah & Joseph E. Stiglitz, 1987. "Price Scissors and the Structure of the Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 102(1), pages 109-134.
    9. Grabowski, Richard & Sivan, David, 1986. "The supply of labor in agriculture and food prices: The cases of Japan and Egypt," World Development, Elsevier, vol. 14(3), pages 441-447, March.
    10. repec:ags:ucdegw:233454 is not listed on IDEAS
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    Cited by:

    1. Cassing, James & Nassar, Saad & Siam, Gamal & Moussa, Hoda, 2007. "Distortions to Agricultural Incentives in Egypt," Agricultural Distortions Working Paper 48511, World Bank.
    2. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).
    3. André Croppenstedt, 2006. "Household Income Structure and Determinants in Rural Egypt," Working Papers 06-02, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

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    Keywords

    Income Egypt ; agricultural economics ;

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