Labor Regulations and Informality in Egypt

This project sets out to assess the impact of the 2003 Labor Law on the performance of the Egyptian labor market. This law was, in theory, issued to increase flexibility in the hiring/firing processes, which have been found to be a major obstacle facing job creation in Egypt. The study explores to what extent flexible labor regulations have led to an increase in formal employment and whether their effect was shared equally across gender and age groups. The study also looks into the short and long term impacts of the changes in regulation and whether the economic crisis has dampened the effects of the law.

Labor Regulations and Informality in Egypt

Jackline Wahba

Professor of Economics, University of Southampton, UK and ERF