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Heterogeneity in the Egyptian informal labour market: choice or obligation?

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  • Rawaa Harati

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper provides historical and empirical arguments that can explain the development of the Egyptian informal sector. After recalling the various approaches proposed in the literatures, it identifies the configuration that overrides the Egyptian labor market by allowing for the heterogeneity of informal jobs and therefore the existence of different segments within the informal sector using a mixture model. It concludes that the Egyptian informal labor market in 2006 was composed of two segments with a distinct wage equations. This may point to the existence of barriers to entry to each sector, e.g. fixed cost related to social stigma which prevent people from working in the sector which offers them the highest expected wage.

Suggested Citation

  • Rawaa Harati, 2013. "Heterogeneity in the Egyptian informal labour market: choice or obligation?," Post-Print halshs-00820783, HAL.
    • Handle: RePEc:hal:journl:halshs-00820783
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00820783
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    References listed on IDEAS

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    Cited by:

    1. Floridi, A. & Wagner, N. & Cameron, J., 2016. "A study of Egyptian and Palestine trans-formal firms – A neglected category operating in the borderland between formality and informality," ISS Working Papers - General Series 619, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Carla Canelas, 2019. "Informality and poverty in Ecuador," Small Business Economics, Springer, vol. 53(4), pages 1097-1115, December.
    3. Edward Sennoga & Lacina Balma, 2022. "Fiscal sustainability in Africa: Accelerating the post‐COVID‐19 recovery through improved public finances," African Development Review, African Development Bank, vol. 34(S1), pages 8-33, July.
    4. Hanan Nazier & Racha Ramadan, 2015. "Informality and Poverty: A Causality Dilemma with Application to Egypt," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 5(4), pages 1-4.
    5. Mónica Jiménez, 2017. "La calidad del empleo y sus consecuencias para el mercado de trabajo de las medianas y grandes empresas y del sector público de argentina," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 40(79), pages 133-180.
    6. Carla Canelas, 2015. "Poverty and informality in Ecuador," WIDER Working Paper Series 112, World Institute for Development Economic Research (UNU-WIDER).
    7. Carla Canelas, 2015. "Poverty and informality in Ecuador," WIDER Working Paper Series wp-2015-112, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Informal market; development economics; finite mixture model; Egypt; segmentation; selection bias; Economie informelle; développement; modèle de mélange; Egypte; biais de sélection;
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