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Friday, August 7, 2020 | History

2 edition of The employment and wage effect of minimum wage in the Egyptian public sector found in the catalog.

The employment and wage effect of minimum wage in the Egyptian public sector

Noha S. Omar

The employment and wage effect of minimum wage in the Egyptian public sector

by Noha S. Omar

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  • 30 Currently reading

Published by The Egyptian Center for Economic Studies in Cairo .
Written in English


Edition Notes

StatementNoha S. Omar, Heba Abdel Latif
SeriesWorking paper series -- no. 166
ContributionsAbdel-Latif, Heba
Classifications
LC ClassificationsMicrofiche 2012/52057 (H)
The Physical Object
FormatMicroform
Pagination30 p.
Number of Pages30
ID Numbers
Open LibraryOL25348728M
LC Control Number2012349820

Egypt’s President Abdel Fattah al-Sisi has raised the country’s minimum wage to 2, Egyptian pounds a month from 1, pounds. The raise would apply to all Egyptian workers. Further, the pensions would rise by 15 percent, with pensioners receiving a minimum increase of pounds to take the minimum pension to pounds.   Here’s the effect a $15 minimum wage has on jobs and poverty in low-income areas, according to a new study from Berkeley Published: July 9, at a.m. ET.

Center on Wage and Employment Dynamics Institute for Research on Labor and Employment • percent of workers in the restaurant industry in the private sector will receive a wage increase, compared to percent in finance, insurance and real estate. The Effects of a $15 Minimum Wage in New York State 5 Net effect on New York. In this framework, the employment reducing effect of the minimum wage depends on: 1) the level of the minimum relative to the market clearing wage and 2) the elasticities of labour demand and supply. Basic - at best, the effect of minimum wage will be zero .

A minimum wage is a limit on how little you can legally pay someone to work. Most countries have a national minimum wage, and cities or regions often set minimum wages higher than the national minimum.¹ Economists have been fighting about minimum wages for over years.² One camp says minimum wages pose a nasty trade off: wages go up for some workers, but other workers lose their . Egypt's new minimum wage disappoints many. Public sector workers win minimum wage rise after years of neglect, but critics say it doesn't go far enough.


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The employment and wage effect of minimum wage in the Egyptian public sector by Noha S. Omar Download PDF EPUB FB2

Minimum Wage in Egypt - july. Working hours. Days per week specified: ; Hours per week specified: 48; Minimum wage is based on 8 hours per day - five-day 6-day work week, 7 hours per day (hour working week is standard).

The team concluded that the increase in the minimum wage rate to $ per hour in New Jersey did not lead to reduced employment, but rather the effect was transmitted to consumers through increase food prices leading to, in fact, an increase in the new number of employees hired.

To be sure, public sector workers are also better paid than those in the formal private sector. One estimate, from the Egyptian statistics agency, puts the average public-sector wage at EGP 2, while the average in the formal private sector is EGP 1, Other estimates, using different measures, all show a “public-sector wage premium.”.

Economists describe the effect of minimum wages using the employment elasticity, which is the ratio of the percentage change in employment to the percentage change in the legislated minimum wage.

For example, a 10% increase in the minimum wage reduces employment of the affected group by 1% when the elasticity is − and by 3% when it is −Cited by: 7. Egypt's Minimum Wage is the lowest amount a worker can be legally paid for his work.

Most countries have a nation-wide minimum wage that all workers must be paid. Egypt's minimum wage rate is LE 1, (around $ USD) per month,and is set by the government for the public sector.

There is no private sector minimum wage. Egypt's minimum wage was. A $10 minimum – According to the CBO’s projections, the $10 minimum wage would raise earnings for up to million workers and “have virtually no effect on employment. In this context, the higher minimum wage in the public sector and the accompanying wage increases will increase inequality, not reduce it.

With the reversal of Egypt’s state-led development strategy inpublic sector hiring was frozen in place. As a result, the public sector shrank by 16% between and   The debate about the effect increases in the minimum wage have on employment is ongoing. Some studies find either no or only a small effect.

5 Reasons Raising the Minimum Wage Is Bad Public Policy. The only way to boost wages is to boost worker productivity. When economists were asked what effect a $ per hour minimum wage will have on small businesses with fewer than 50 employees, nearly 7 out of 10 economists (67%) believe it would make it harder for them to stay in.

In Egypt, minimum wage refers to lowest nominal wage per month, for permanent workers in private and public sector.

A national monthly minimum wage was set at 35 Egyptian pounds in and remained unchanged at that level until InPresident Abdel Fattah Al-Sisi set a maximum wage of 42 EGP per month for state employees.

The most detailed study in recent years of the minimum wage’s effects was published in a book by economists Dale Belman and Paul Wolfson.5 Belman and Wolfson conducted a meta-analysis (a study of studies) of over scholarly papers on the minimum wage published since They conclude that “modest minimum wage increases raise wages.

Minimum Wage Rates. The United States federal government set the national minimum wage rate at $ per hour in July But many states have minimum wage rates that are much higher, with the. The minimum wage’s effects on employment and income trajectories In the context discussed above, we find that minimum wage increases significantly reduced the employment of low-skilled workers.

By the second year following the $ minimum’s implementation, we estimate that targeted workers’ employment rates had fallen by 6 percentage.

The government’s response did raise the public sector minimum wage, but only to pounds, or less than $ per month. And government ministers did set a public sector compensation ratio between top and bottom, at 36 to 1.

Inflation in the service sector, in which most minimum wage workers are employed, rose percent in percent higher than the overall Inflation rate. Reduces Job Opportunities for. Effects of Minimum Wages Advantages of Minimum Wage Legislation A minimum wage acts as an incentive for an employee to take up a job since one has the knowledge about the minimum pay (Bonello, ).

A simple comparison between the money got from public assistance and the minimum wage enables one to deduce the financial incentive involved in. This was undertaken to analyze the effect of minimum wage had on employment and productivity. Also, in order to compare data ranging fromand were used.

Based on the finding of this research work, the minimum wage did not have a serious negative effect on employment. Kevin Lang and Shulamit Kahn, “The Effect of Minimum-Wage Laws on the Distribution of Employment: Theory and Evidence,”Journal of Public Economics, Vol.

69, No. 1 (July ), pp. Economists describe the effect of minimum wages using the employment elasticity, which is the ratio of the percentage change in employment to the percentage change in the legislated minimum wage.

For example, a 10% increase in the minimum wage reduces employment of the affected group by 1% when the elasticity is − and by 3% when it is −   A study of available literature, “The Effect of Minimum Wage on Prices,” analyzed a wide variety of research on the impact of changes in the minimum wage.

The paper, from the University of Leicester, found that firms tend to respond to minimum wage increases not by reducing production or employment, but by raising prices.

In Julya minimum wage of LE ($) was set in the public sector for the first time since the eighties. Doctors, professors and other professions were excluded.In a recent working paper entitled “Effects of the minimum wage on employment dynamics,” (National Bureau of Economic Research working paper no.Augustrevised December ) economists Jonathan Meer and Jeremy West assert that the current literature on the minimum wage lacks concrete findings on how a wage floor impacts.

The effect of a minimum wage depends, in part, on whether the labor market is competitive—or not, in which case employers exert significant power over wage decisions. We review the employment effects of the minimum wage under two extreme assumptions: In the first case, there are a lot of employers competing to attract workers; in the second.