Induced Wage Effects of Changes in Food Prices in Egypt
Gaurav Datt () and
Journal of Development Studies, 2004, vol. 40, issue 4, 137-166
The trend in real agricultural wages in Egypt over the two decades since the mid-1970s is well described by an inverted U-shaped curve with a peak around 1985. But the rise and fall of real wages masks a complex dynamic process by which nominal wages adjust in response to changes in food prices. We use governorate-level panel data for 1976-93 to explore the nature of this adjustment process. Our results indicate that nominal wages adjust slowly. There is a significant negative initial impact of rising food prices on real wages, though wages do catch up in the long run.
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Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevst:v:40:y:2004:i:4:p:137-166
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