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

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.