Political Change and Informality

36 Pages Posted: 24 Jan 2019

See all articles by Ahmed Elsayed

Ahmed Elsayed

IZA

Jackline Wahba

University of Southampton, Department of Economics; IZA Institute of Labor Economics

Date Written: January 2019

Abstract

This paper examines informality during the political and economic turmoil that accompanied the Arab Spring revolution in Egypt. The paper focuses on unprotected employment and the extent to which it changed by educational level immediately after the January Uprising of 2011. We find that over time and particularly after the revolution, informal employment has increased for both high‐ and low‐educated workers, albeit through different paths: high‐educated workers were more likely to be stuck in informality, while low‐educated formal workers were more likely to lose their contracts. The increase in informal employment in the wake of the Arab Spring is more pronounced for the high‐educated. The results suggest a high level of rigidity in the Egyptian labour market, even in the wake of the Arab Spring.

Keywords: Informal employment, job contracts, Arab Spring

Suggested Citation

Elsayed, Ahmed and Wahba, Jackline, Political Change and Informality (January 2019). Economics of Transition and Institutional Change, Vol. 27, Issue 1, pp. 31-66, 2019, Available at SSRN: https://ssrn.com/abstract=3319960 or http://dx.doi.org/10.1111/ecot.12198

Ahmed Elsayed (Contact Author)

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Jackline Wahba

University of Southampton, Department of Economics ( email )

Southampton, SO171BJ
United Kingdom
+44 23 8059 3996 (Phone)

HOME PAGE: http://https://sites.google.com/site/jackiewahba/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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