Assessing The Effects of Trade Liberalization on Wage Inequalities in Egypt: A Microsimulation Analysis

This paper develops a microsimulation analysis to evaluate the impact of trade liberalization policies in Egypt on income redistribution. Our analysis aims at identifying the effects of those measures on redistribution aspects. For this, we rely on a macro – micro approach integrating results obtained from a discrete choice model of labor supply in a Computable General Equilibrium model (CGE). In the empirical work, we use the Egyptian Labor Market and Panel Survey (ELMPS) of 1998 and 2006 as well as the Social Accounting Matrix (SAM) of 2001. This assessment allows us to find out to what extent such macroeconomic policies affect, on the microeconomic level, females poverty, wages and employment opportunities.