Labor Market, Urban Poverty and Propoor Employment Policies

Heba Nassar () and Heba El Laithy
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Heba Nassar: Faculty of Economics & Political Science, Cairo University

No 2036, Working Papers from Economic Research Forum

Abstract: A complicated relationship exists between labor market mechanisms and poverty. Poverty might arise from labor market mechanisms, as much as from other more obvious factors such as overall living standards, low levels of production and productivity as well as socioeconomic conditions that lead to inequalities in the labor market. This paper tries to study the relationship between urban poverty and the labor market by constructing a poverty index using the data of the Survey" Socioeconomic conditions of Work in Greater Cairo". Factor analysis was used to combine seventeen socio-economic variables in one poverty index. The index was used to study the accessability of the poor to the labor market and their main occupational, work characteristics and the characteristics of the informal sector. Meanwhile the authors studied the relative importance of different factors in determining the welfare status of the different categories using logistic regression. Finally the paper suggested several propoor employment policies at the macro, intermediate and micro- depending on the analysis of the chareteristics of the poor in the labor market.

Pages: 32 pages
Date: 2000-23-11, Revised 2000
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Published by The Economic Research Forum (ERF)

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