Trade Integration With Europe & Labor Reallocations in the South Mediterranean Countries: The Case of Egypt
This paper looks at the implications of the Euro-Mediterranean partnership agreement on labor and wages in Egypt, using a dynamic CGE model, which takes into account the labor market segmentation. Our results suggest that trade liberalization bears the risk of promoting the use of capital-intensive technology, thus reducing the employment content of growth. Employment policies that increase the mobility between the segments of the labor market and wage flexibility could enhance the job creation effect induced by trade liberalization. Employment and trade policies are also complementary in political terms, by alleviating the losses borne by the insiders following the entry of new workers into the labor market.
Year of publication: |
1999-06
|
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Authors: | Dessus, Sébastien ; Suwa-Eisenmann, Akiko |
Institutions: | Economic Research Forum (ERF) |
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