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Agricultural wages and food prices in Egypt

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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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    References listed on IDEAS

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    1. 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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    7. Simon Commander & Aly Abdullah Hadhoud, 1986. "From Labour Surplus to Labour Scarcity? The Agricultural Labour Market in Egypt," Development Policy Review, Overseas Development Institute, vol. 4(2), pages 161-180, June.
    8. 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.
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    11. 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 Series 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. Gaurav Datt & Jennifer Olmsted, 2004. "Induced Wage Effects of Changes in Food Prices in Egypt," Journal of Development Studies, Taylor & Francis Journals, vol. 40(4), pages 137-166.
    4. 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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