Transitions across labor market states including formal/informal division in Egypt

This study examines the worker transitions across labor market states including formal/informal division using panel data of 2006 to 2012 from Egypt. We generate a broad set of facts about labor market dynamics in Egypt. We first develop transition probabilities by gender across different labor market states including formal/informal sectors utilizing Markov transition processes. Government employment is the most persistent labor market state for both men and women and the out of labor force is the second most persistent labor market state for women. Unemployment is the most mobile labor market state. Informal private wage work and self-employed-agriculture are also relatively mobile labor market states. We next identify the effects of individual, household and job characteristics on different mobility patterns by estimating multinomial logit models. We find that gender, age, education, experience, and several sectors of economic activity are associated with the transition probabilities between the labor market states considered such as formal wage, informal wage, self-employment, unemployment, government employment, and out of labor market. Education, in particular, university degree or above is noted to play a vital role in the probability of transitions across several labor market states.


Tansel, Aysıt (2015-07-01)
In this study, we examine the formal/informal sector earnings differentials in the Turkish labor market using detailed econometric methodologies and a novel panel data set drawn from the 2006-2009 Income and Living Conditions Survey (SILC). In particular, we test if there is evidence of traditional segmented labor markets theory which postulates that informal workers are typically subject to lower remuneration than similar workers in the formal sector. Estimation of standard Mincer earnings equations at the...
Is there an informal employment wage penalty in Egypt? Evidence from quantile regression on panel data
Tansel, Aysıt; Ozdemir, Zeynel Abidin (2020-06-01)
This is the first study that uses panel data to assess the magnitude of the informal sector wage gap in Egypt. We consider the private sector male wage earners in Egypt and examine their wage distribution during 1998-2012 using the Egyptian Labor Market Panel Survey. We estimate Mincer wage equations both at the mean and at different quantiles of the wage distribution taking into account observable and unobservable characteristics with a fixed effect model. We also consider the possibility of nonlinearity i...
Labor mobility across the formal/informal divide in Turkey Evidence from individual-level data
Tansel, Aysıt (2017-01-01)
Purpose - This paper, the first one to use individual-level Turkish panel data, examines the labor market transitions in Turkey along the formal/informal employment divide. The purpose of this paper is to contribute to the limited body of empirical evidence available on mobility and informality in the Turkish labor market.
Saraçoğlu, Dürdane Şirin; Voyvoda, Ebru (Informa UK Limited, 2018-01-01)
This study investigates the feminization and defeminization trends in manufacturing employment in thirty countries from 1995 to 2011. Utilizing two separate methods, structural decomposition analysis (SDA) and factor content analysis (FCA), the study identifies the major industries and trade partners behind the structural shifts in trade that have induced changes in employment and thus in the rates of women's employment. The findings highlight that, as a general trend, defeminization in manufacturing has pe...
Persistence of informal employment in Turkey
Başak, Zeynep; Taymaz, Erol; Department of Economics (2013)
The primary aim of this study is to examine the persistence of informal employment in Turkey and to test two hypotheses proposed by labor market segmentation theory (LMS) which suggest that there are persistent wage, security, working conditions, and control mechanisms differentials between the various segments of the labor market and the labor mobility between the segments is limited. In doing so, two data sets have been utilized: the Household Labor Force Survey (2006-2011) and the retrospective labor mar...
Citation Formats
A. Tansel, “Transitions across labor market states including formal/informal division in Egypt,” REVIEW OF DEVELOPMENT ECONOMICS, pp. 1674–1695, 2019, Accessed: 00, 2020. [Online]. Available: