Did Trade Liberalization Benefit Female Workers? Evidence on Wage and Employment Effects from Egypt

Type Working Paper - Economic Research Forum Working Paper
Title Did Trade Liberalization Benefit Female Workers? Evidence on Wage and Employment Effects from Egypt
Author(s)
Issue 787
Publication (Day/Month/Year) 2013
URL http://www.erf.org.eg/CMS/uploads/pdf/787.pdf
Abstract
Egypt has gone through a period of dramatic, albeit slow, economic reform and trade
liberalization process, with average tariff rates being reduced by more than 50% over a period
of 15 years. This study investigates the extent of gender discrimination in the Egyptian
manufacturing sector, and the impact of trade reform on the gender wage gap and on female
employment. Results indicate that the gender wage gap, most of which is “unexplained” by
worker characteristics, is high and has increased dramatically over time. Increasing trade
liberalization has largely had a negative impact on women’s relative wages and on their
employment, even after controlling for the public-private distinction as well as the
occupational distinction. There is, however, some evidence supporting a favorable impact of
increased export intensity on females in the labor market. This has important implications for
policy makers attempting to create more equitable labor market conditions in postrevolutionary
Egypt.

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