Sectoral Mobility and Egyptian Labor Reform

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Abstract/Contents

Abstract: This paper examines the effects of a recent labor law, which seeks to promote job creation in the private sector of the Egyptian labor market. Labor Law 12 of 2003 provides increased flexibility in the hiring and firing procedures for private sector employers in Egypt. This paper analyzes the effects of this legislation on new entrants to the labor force, experienced workers, public sector workers, and the unemployed. Specifically, this paper examines the mobility of workers from the public to the private sector and the wages of workers in both sectors. The empirical evidence suggests that the added non-wage benefits of this law effectively led to a transfer of workers from the public sector to the private sector. Egypt’s interim military-led government is seeking to repeal many of Egypt’s recent economic reforms aimed at liberalizing the Egyptian economy, including Labor Law 12. Based on my analysis I recommend that Labor Law 12 should be maintained and the new government should continue to increase incentives for private sector employment.

Type of resource	text
Date created	June 2011

Author	Guirguis, Michael M.
Primary advisor	Pencavel, John
Degree granting institution	Stanford University, Department of Economics

Subject	Stanford Department of Economics
Subject	Labor
Subject	Private Sector
Subject	Public Sector
Subject	Economic Reform
Genre	Thesis

Location	https://purl.stanford.edu/vj488jr4834

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Preferred Citation: Guirguis, Michael M. (2011). Sectoral Mobility and Egyptian Labor Reform. Stanford Digital Repository. Available at: https://purl.stanford.edu/vj488jr4834

Stanford University, Department of Economics, Honors Theses

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