The effects of public sector hiring and compensation policies on the Egyptian labor market

    Research output: Contribution to journalArticle

    57 Citations (Scopus)

    Abstract

    This article examines the combined impact of the employment guarantee for graduates and public sector compensation policies on the Egyptian labor market. Besides contributing to an unsustainable rate of growth in the government labor force, these policies have encouraged queuing for government jobs, contributed to high graduate unemployment rates, and reduced the employment of graduates in the private sector. Despite substantial wage erosion in the public sector in recent years, government wages, when appropriately corrected for observed heterogeneity and sample selection, are on a par with, or higher than, private sector wages, especially for graduates. When combined with the more desirable nonwage aspects of government jobs, these compensation levels explain the attractiveness of public sector employment to graduates. Government pay scales are especially advantageous to female secondary school graduates, who appear to face considerable discrimination in the private sector.

    Original languageEnglish (US)
    Pages (from-to)85-118
    Number of pages34
    JournalWorld Bank Economic Review
    Volume11
    Issue number1
    DOIs
    StatePublished - Jan 1 1997

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    hiring
    public sector
    labor market
    graduate
    wage
    private sector
    female secondary school graduate
    pay scale
    unemployment rate
    social attraction
    unemployment
    labor force
    erosion
    guarantee
    discrimination
    effect
    policy
    Public sector
    Government
    Labour market

    Cite this

    The effects of public sector hiring and compensation policies on the Egyptian labor market. / Assaad, Ragui.

    In: World Bank Economic Review, Vol. 11, No. 1, 01.01.1997, p. 85-118.

    Research output: Contribution to journalArticle

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