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Trade Reform, Job Quality And Wages Of The Working Poor In Egypt:Evidence From Manufacturing Panel Data

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  • Mona Said

    (London Middle East Institute, SOAS, UK
    American University in Cairo and Economic Research Forum, Egypt)

Abstract

This paper examines the impact of accelerating privatization and trade liberalization initiatives on wage and job quality outcomes of the working poor in the Egyptian manufacturing sector. Determinants of wage and job quality are estimated using panel and quantile regression methods and utilizing newly available labor survey data, merged with trade variables that capture decreased protection and increased competitive pressures over the period 1998-2006. Although the results indicate that trade reform in the form of lower tariffs and increased export promotion exert a small positive influence on the incomes of the poor, this might come at the expense of higher incidence of low quality jobs. Trade-related variables in general exert a minor influence on labor rewards for the poor in comparison to private sector employment and gender, which remain the main segmenting factors in the labor market. These findings underscore the importance of social protection and gender specific safety nets during the process of privatization. As trade liberalization progresses, policies that promote higher labor standard and „decent jobs. need also to be addressed.

Suggested Citation

  • Mona Said, 2012. "Trade Reform, Job Quality And Wages Of The Working Poor In Egypt:Evidence From Manufacturing Panel Data," Journal of Developing Areas, Tennessee State University, College of Business, vol. 46(2), pages 159-183, July-Dece.
    • Handle: RePEc:jda:journl:vol.46:year:2012:issue2:pp:159-183
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    Citations

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    Cited by:

    1. Ragui Assaad & Caroline Krafft, 2013. "The Egypt labor market panel survey: introducing the 2012 round," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-30, December.
    2. Giorgia Giovannetti & Enrico Marvasi & Arianna Vivoli, 2021. "The asymmetric effects of 20 years of tariff reforms on Egyptian workers," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 89-130, April.

    More about this item

    Keywords

    labor; wages; job quality; trade liberalization; panel data; quantile regression models;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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