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What Happened to Real Earnings in Egypt, 2008 to 2009?

Author

Listed:
  • Paul Cichello
  • Hala Abou-Ali

    (Cairo University and ERF)

  • Daniela Marotta

Abstract

Nominal earnings in Egypt were non-responsive to the increase in inflation between February 2008 and February 2009, resulting in a 12.3 (9) percent decline in average (median) real earnings among 25 to 60 years old workers. Indeed, the decline appears to be directly related to the increase in inflation rather than to changes in the employment status or type or sector of employment. Changes in earnings differ significantly by groups: (i) those with higher initial earnings (reported and predicted) suffered the largest declines in earnings; (ii) when controlling for initial earnings, women lost considerably more than men; (iii) those who were initially in agriculture also had greater declines despite rising food prices. This evidence is consistent with the assumption of labor market segmentation, with agriculture representing the least preferred free entry sector and differential pay being offered to the same individual working in different sectors.

Suggested Citation

  • Paul Cichello & Hala Abou-Ali & Daniela Marotta, 2013. "What Happened to Real Earnings in Egypt, 2008 to 2009?," Working Papers 755, Economic Research Forum, revised May 2013.
    • Handle: RePEc:erg:wpaper:755
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    References listed on IDEAS

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    Cited by:

    1. Khalid Abu-Ismail & Niranjan Sarang, 2015. "Rethinking the measurement of the middle class: Evidence from Egypt," WIDER Working Paper Series 023, World Institute for Development Economic Research (UNU-WIDER).
    2. Khalid Abu-Ismail & Niranjan Sarang, 2015. "Rethinking the Measurement of the Middle Class: Evidence from Egypt," WIDER Working Paper Series wp-2015-023, World Institute for Development Economic Research (UNU-WIDER).

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