Dynamics of multidimensional poverty and trade liberalization: Evidence from panel data for Egypt

Abstract

This chapter investigates the dynamics of poverty in Egypt using monetary and non-monetary panel data, and the impact of trade liberalization on poor and low waged workers. We find a relatively low level of economic mobility in both income and non-income indicators, with the majority of those who were “poor” in 1998, whether in the monetary or non-monetary dimension, remaining so by 2006. Trade reform in the form of lower tariffs and increased export promotion exerted a small positive influence on the incomes of the poor; however, this came at the expense of greater informalization of workers and higher incidence of low quality jobs. We also find that private sector employment and gender have a much more important role in segregating the labor market.