EconPapers    
Economics at your fingertips  
 

An Analysis of Compensation Programs for Redundant Workers in Egyptian Public Enterprise

Ragui Assaad ()

No 9701, Working Papers from Economic Research Forum

Abstract: Because the Egyptian labor code contains stringent job security provisions, the focus of this paper is on voluntary severance programs. An efficient voluntary program would achieve its exit target by matching compensation payments to the individual-specific losses that workers incur by leaving the public sector. After a brief review of the institutional and legal setting, the paper is divided into two parts. The first estimates the individual-specific losses as the difference between their lifetime compensation in the public sector and the opportunity cost of their labor in the private sector. The value of the non-wage aspects of public sector jobs is estimated indirectly by exploiting information on queuing for public sector jobs. The second part of the paper uses these individual-specific estimates of worker losses to conduct simulations of voluntary severance schemes where compensation is indexed on various observable worker characteristics like tenure, years of denied service and wage. The results of the simulation include the average cost per worker under each scheme and the composition of exiting and remaining workers along various observable characteristics.

Date: 1997-02-01, Revised 1997-02-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://bit.ly/2vfYX2T (text/html)

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:erg:wpaper:9701

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().

 
Page updated 2025-03-30
Handle: RePEc:erg:wpaper:9701