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Labor Market Adjustment during the World Financial Crisis: Evidence from Egypt

Author

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  • Rania Roushdy

    (Population Council, WANA Regional Office)

  • May Gadallah

Abstract

The main objective of this paper is to investigate the impact of the world financial crisis of 2008 on the Egyptian labor market outcomes and dynamics. The paper uses the quarterly labor force surveys data for the period 2006 to 2009. The results of the paper show that there has not been a substantial crisis-related impact on the Egyptian labor market. There has been a mild decline in unemployment, combined with a slight increase in both labor force participation and employment to population ratio. Also, the effect of the crisis on hours worked, informality of employment and sectorial labor shift has been minimal; but a sharp decline in real earnings growth has been observed in the second half of 2009 in Egypt. Despite those minor effects of the crisis on the overall labor market outcomes, some subgroups of workers have been more vulnerable than others during the crisis. The results of this paper concur with the historical experience, which suggests that young, old, unskilled and female workers are more likely to bear the brunt of an economic downturn.

Suggested Citation

  • Rania Roushdy & May Gadallah, 2011. "Labor Market Adjustment during the World Financial Crisis: Evidence from Egypt," Working Papers 643, Economic Research Forum, revised 10 Jan 2011.
    • Handle: RePEc:erg:wpaper:643
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    References listed on IDEAS

    as
    1. Attia, Sayed Moawad, 2009. "The informal Economy as an engine for poverty reduction and development in Egypt," MPRA Paper 13034, University Library of Munich, Germany, revised 27 Jan 2009.
    2. Khanna, Gaurav & Newhouse, David & Paci, Pierella, 2010. "Fewer Jobs or Smaller Paychecks? Labor Market Impacts of the Recent Crisis in Middle-Income Countries," World Bank - Economic Premise, The World Bank, issue 11, pages 1-4, April.
    3. Georgie D. M. Hyde, 1988. "The Role of Women," Palgrave Macmillan Books, in: South Korea, chapter 6, pages 100-113, Palgrave Macmillan.
    4. John Humphrey, 1996. "Responses to recession and restructuring: Employment trends in the Sao Paulo metropolitan region, 1979-87," Journal of Development Studies, Taylor & Francis Journals, vol. 33(1), pages 40-62.
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    Cited by:

    1. Christophe J. Nordman & François-Charles Wolff, 2009. "Is There a Glass Ceiling in Morocco? Evidence from Matched Worker--Firm Data," Journal of African Economies, Centre for the Study of African Economies, vol. 18(4), pages 592-633, August.
    2. Jackline Wahba & Ragui Assaad, 2017. "Flexible Labor Regulations and Informality in Egypt," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 962-984, November.
    3. 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.
    4. Ishac Diwan, 2014. "Understanding Revolution In The Middle East: The Central Role Of The Middle Class," World Scientific Book Chapters, in: Ishac Diwan (ed.), UNDERSTANDING THE POLITICAL ECONOMY OF THE ARAB UPRISINGS, chapter 3, pages 29-56, World Scientific Publishing Co. Pte. Ltd..
    5. Ishac Diwan, 2013. "Who are the Democrats? Leading Opinions in the Wake of Egypt’s 2011 Popular Uprisings," CID Working Papers 256, Center for International Development at Harvard University.
    6. Paul Cichello & Hala Abou-Ali & Daniela Marotta, 2013. "What happened to real earnings in Egypt, 2008 to 2009?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-38, December.
    7. Mona Said, 2015. "Wages and Inequality in the Egyptian Labor Market in an Era of Financial Crisis and Revolution," Working Papers 912, Economic Research Forum, revised May 2015.

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