Earnings and Regional Inequality in Egypt

Jackline Wahba

No 9613, Working Papers from Economic Research Forum

Abstract: This paper presents an empirical investigation of the determinants of labor market earnings inequality in Egypt. Using the Human Capital model, the determinants of regional earnings are examined. The relative importance of individual and regional effects on earnings inequality is assessed. This paper finds that the estimated rates of return to education increase with rising educational levels. This is different to common patterns found in most developing countries. Also, there are substantial variations in returns to education across regions. Moreover, estimates point to the importance of credentials in the Egyptian labor market.

Date: 1996-02-05, Revised 1996-02-05
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