Agricultural wages and food prices in Egypt

a governorate-level analysis for 1976-1993

The trend in real agricultural wages in Egypt is described well 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 1976-1993 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.

Author: 
Datt, Gaurav
Olmsted, Jennifer
Published date: 
1998
Publisher: 
International Food Policy Research Institute (IFPRI)
Series number: 
53
PDF file: 
application/pdf icondp53.pdf(486.3KB)