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Did Trade Liberalization Benefit Female Workers? Evidence from Egypt on Wage and Employment Effects

In: Women, Work and Welfare in the Middle East and North Africa The Role of Socio-demographics, Entrepreneurship and Public Policies

Author

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  • Shireen AlAzzawi

Abstract

Egypt has undergone a dramatic, albeit slow, economic reform and trade liberalization that has reduced its average tariff rates by more than 50 percent over 15 years. This study investigates the extent of gender discrimination in Egyptian manufacturing, and the impact of trade reform on the gender wage gap and on female employment. Results indicate that the gender wage gap, most of which is unexplained by worker characteristics, has widened over time. Results indicate that trade liberalization is associated with a tradeoff for women in the labor market: in industries facing a larger change in the degree of import competition, there is higher female employment, but only at the expense of a wider gender wage gap. Industries facing a larger change in the degree of their export intensity, on the other hand, have witnessed a decline in their gender wage gap but also a fall in female employment. These patterns have important implications for policymakers attempting to create more equitable labor market conditions.

Suggested Citation

  • Shireen AlAzzawi, 2016. "Did Trade Liberalization Benefit Female Workers? Evidence from Egypt on Wage and Employment Effects," World Scientific Book Chapters, in: Nadereh Chamlou & Massoud Karshenas (ed.), Women, Work and Welfare in the Middle East and North Africa The Role of Socio-demographics, Entrepreneurship and Public Policies, chapter 16, pages 445-477, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781783267347_0016
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    Citations

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    Cited by:

    1. 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.
    2. Salem, Mélika Ben & Zaki, Chahir, 2019. "Revisiting the Impact of Trade Openness on Informal and Irregular Employment in Egypt," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(3), pages 465-497.
    3. Shireen AlAzzawi, 2015. "Endowments or Discrimination? Determinants of Household Poverty in Egypt," Working Papers 931, Economic Research Forum, revised Aug 2015.
    4. Ahmed Fayez Abdelgouad, 2014. "Labor Law Reforms and Labor Market Performance in Egypt," Working Paper Series in Economics 314, University of Lüneburg, Institute of Economics.
    5. Giorgia Giovannetti & Enrico Marvasi & Arianna Vivoli, 2020. "The asymmetric effects of twenty years of tariff reforms on Egyptian workers," Working Papers LuissLab 20156, Dipartimento di Economia e Finanza, LUISS Guido Carli.

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