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...

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Bibliographic Details
Main Authors: Datt, Gaurav, Olmsted, Jennifer
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 1998
Subjects:
Online Access:https://hdl.handle.net/10568/161208
Description
Summary: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.