Trends in Income and Wage Inequality in Egypt (1988-2023)

Mona Elsayed, May Gadalla () and Mariam Hagag
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May Gadalla: Cairo University and ERF

No 1752, Working Papers from Economic Research Forum

Abstract: This paper examines the dynamics of income, wage levels, and distribution in Egypt, particularly emphasizing income inequality and diversification. This analysis is particularly crucial in light of the numerous shocks that hit the Egyptian economy in recent years. Drawing upon data from the 1988, 1998, 2006, 2012, 2018, and 2023 waves of the Egypt Labor Market Panel Survey (ELMPS), this paper studies the evolution of income and wage levels and distributions over time, including the trend in the shares of income sources and real wages. Additionally, we examine trends in income diversification, given that it is considered an integral tool for coping with economic shocks and reducing vulnerability. Finally, we explore trends in income and wage inequality relying on different inequality measures such as the Gini index, the general entropy at (1) and (-1), and different percentile ratios (e.g., 10/50, 90/50, and 90/10). We also conduct an inequality decomposition by income source to identify the key factors contributing to income disparities and changes in their contribution over time.

Pages: 49
Date: 2024-11-20, Revised 2024-11-20
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