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Agricultural wages and food prices in Egypt

  • Datt, Gaurav
  • Olmsted, Jennifer

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.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 53.

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Date of creation: 1998
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Handle: RePEc:fpr:fcnddp:53
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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. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  3. 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.
  4. Sah, Raaj Kumar & Stiglitz, Joseph E, 1987. "Price Scissors and the Structure of the Economy," The Quarterly Journal of Economics, MIT Press, vol. 102(1), pages 109-34, February.
  5. 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.
  6. Hansen, Bent, 1969. "Employment and Wages in Rural Egypt," American Economic Review, American Economic Association, vol. 59(3), pages 298-313, June.
  7. 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 361-76, November.
  8. Richards, Alan, 1994. "The Egyptian farm labor market revisited," Journal of Development Economics, Elsevier, vol. 43(2), pages 239-261, April.
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