Assessing the Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis

Type Journal Article - The International Trade Journal
Title Assessing the Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis
Author(s)
Volume 27
Issue 1
Publication (Day/Month/Year) 2013
Page numbers 63-104
URL http://www.erf.org.eg/CMS/uploads/pdf/1287324009_555.pdf
Abstract
This paper develops a microsimulation analysis to evaluate the impact of trade liberalization
policies in Egypt on income redistribution. Our analysis aims at identifying the effects of
those measures on redistribution aspects. For this, we rely on a macro - micro approach
integrating results obtained from a discrete choice model of labor supply in a Computable
General Equilibrium model (CGE). In the empirical work, we use the Egyptian Labor Market
and Panel Survey (ELMPS) of 1998 and 2006 as well as the Social Accounting Matrix
(SAM) of 2001. This assessment allows us to find out to what extent such macroeconomic
policies affect, on the microeconomic level, females poverty, wages and employment
opportunities.

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