Job creation or labor absorption? An analysis of private sector job growth in Egypt

Ragui Assaad, Caroline Krafft, Shaimaa Yassin

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


Creating jobs, especially good jobs, is one of the greatest challenges facing Egypt. This paper investigates the nature of job growth in Egypt, including the firm, industry, and worker characteristics that are related to job growth. Using data from Egypt’s establishment censuses linked to various firm and labor surveys, we examine job growth in private sector establishments over 1996–2017. We find that job growth has primarily followed a labor absorption paradigm, with job growth unrelated to productivity and highest for firms with more informal employment.

Original languageEnglish (US)
Pages (from-to)177-207
Number of pages31
JournalMiddle East Development Journal
Issue number2
StatePublished - 2020

Bibliographical note

Funding Information:
This work was supported by the Economic Research Forum (Egypt). The authors acknowledge the support of the Economic Research Forum under the ‘Egypt Labor Demand Project.’ The authors appreciate the comments of project workshop participants and Bob Rijkers on earlier paper drafts. The contents and recommendations do not necessarily reflect the views of the Economic Research Forum.

Publisher Copyright:
© 2020 Economic Research Forum.


  • Egypt
  • Employment
  • job creation
  • job growth


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