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Assessing the Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis

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  • Rana Hendy
  • Chahir Zaki

Abstract

This article aims at evaluating the liberalization policies' effects on wage inequality in Egypt. Gender, geographical, and skill dimensions are used to break down labor into eight segments. This article simulates the effect of a reduction of tariffs imposed on imports by 50%. Results show that the effect of trade liberalization policies depends on the characteristics of the individual and the working sector. Thanks to the expansion of textiles, garments, chemicals, and services, inequality decreases for urban and rural skilled men as well as skilled and unskilled women working in urban areas. By contrast, inequality increases among unskilled men and skilled women in rural areas.

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  • Rana Hendy & Chahir Zaki, 2013. "Assessing the Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis," The International Trade Journal, Taylor & Francis Journals, vol. 27(1), pages 63-104, March.
    • Handle: RePEc:taf:uitjxx:v:27:y:2013:i:1:p:63-104
    DOI: 10.1080/08853908.2012.702538
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    3. Eduardo Amaral Haddad & Michael L. Lahr & Dina N. Elshahawany & Moisés Vassallo, 2016. "Regional analysis of domestic integration in Egypt: an interregional CGE approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-33, December.
    4. Robertson,Raymond & Vergara Bahena,Mexico Alberto & Kokas,Deeksha & Lopez-Acevedo,Gladys C., 2021. "International Trade and Labor Markets : Evidence from the Arab Republic of Egypt," Policy Research Working Paper Series 9668, The World Bank.
    5. Chakraborty, Lekha & Singh, Yadawendra, 2018. "Fiscal Policy, as the "Employer of Last Resort": Impact of MGNREGS on Labour Force Participation Rates in India," Working Papers 18/210, National Institute of Public Finance and Policy.
    6. City Eldeep & Chahir Zaki, 2023. "On the unfinished business of stabilization programs: a CGE model of Egypt," Middle East Development Journal, Taylor & Francis Journals, vol. 15(1), pages 66-100, January.
    7. Krafft Caroline & Assaad Ragui & Rahman Khandker Wahedur, 2021. "Introducing the Egypt Labor Market Panel Survey 2018," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-40, January.
    8. Osman, Rehab & Ferrari, Emanuele & McDonald, Scott, 2019. "Is improving Nile water quality ‘fruitful’?," Ecological Economics, Elsevier, vol. 161(C), pages 20-31.
    9. Jérémie Gignoux & Akiko Suwa-Eisenmann, 2017. "The Regional Impact of Trade Liberalization on Households in Egypt, 1999-2012," PSE Working Papers hal-01941280, HAL.
    10. Chakraborty, Lekha S & Singh, Yadawendra, 2018. "Fiscal Policy, as the “Employer of Last Resort”: Impact of Direct fiscal transfer (MGNREGA) on Labour Force Participation Rates in India," MPRA Paper 85225, University Library of Munich, Germany.
    11. Purva Khera, 2016. "Macroeconomic Impacts of Gender Inequality and Informality in India," IMF Working Papers 2016/016, International Monetary Fund.
    12. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1645-1718, Elsevier.

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