Impact of labor market reforms on informality in Egypt

Date

2009

Journal Title

Journal ISSN

Volume Title

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.

Description

Keywords

LABOUR LAW, PRIVATE SECTOR, ECONOMIC REFORM, PUBLIC SECTOR, LABOUR MARKET, FORMAL SECTOR, INFORMAL SECTOR, EMPLOYMENT POLICY, EGYPT

Citation

DOI