Impact of the minimum wage policy on consumption expenditure and poverty in Egypt

Eman Abd Allah Abd Allah Mohamed and Nayera Yehia Solieman Eid

International Journal of Economics and Business Research, 2018, vol. 15, issue 2, 166-179

Abstract: Development has not yet achieved its goals in developing countries due to the increase in poverty rates. In October 2013, the Government of Egypt decided to implement the monthly minimum wage policy to allow citizens attain their needs of different expenditure groups thus reduce poverty. The research estimated the monthly wage that allows poor household individuals attain their daily needs of different expenditure groups after the latest increases in prices, and compared it with the monthly minimum wage to find if it helped them move out of poverty. Findings revealed that such policy shall help move 53% of the study households out of poverty, but the rest are threatened to fall in poverty as prices go higher. The research recommended revisiting the monthly minimum wage periodically to match the rising prices to help improve the economic conditions of vulnerable categories for better health and economic performance to achieve development goals.

Keywords: raising the standard of living for Egyptian citizens; monthly minimum wage policy; poor categories; consumption expenditure; consumption expenditure categories; national poverty line; wages required to cover consumption expenditure needs; Egypt. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=89685 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijecbr:v:15:y:2018:i:2:p:166-179

Access Statistics for this article

More articles in International Journal of Economics and Business Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().