Impact of labor market reforms on informality in Egypt
Date
2009
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Publisher
Population Council, Cairo, EG
Abstract
This paper examines the effect of the new labor law of 2003, which
provides flexibility in the hiring and firing procedures since labor market
inflexibility was seen as one of the obstacles to job creation in Egypt. The
analysis focuses on the effect of the new law on formal employment (jobs
with contracts) in the private non-agricultural regular waged sector. The
findings suggest that the new law has had a positive impact on those who
were employed in 1998 in the private non-agricultural sector and in the private
non-agricultural waged sector. However, the effect was not significant
for new entrants to the labor market looking for first jobs.
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Keywords
LABOUR LAW, PRIVATE SECTOR, ECONOMIC REFORM, PUBLIC SECTOR, LABOUR MARKET, FORMAL SECTOR, INFORMAL SECTOR, EMPLOYMENT POLICY, EGYPT