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ERC WORKING PAPERS

Determinants of Transitions across Formal/Informal Sectors in Egypt

Aysit Tansel and Zeynel Abidin Ozdemir

Abstract:
Informality is a salient feature of labor market in Egypt as it is the case with many developing countries. This is the first study of the determinants of worker transitions between various labor market states using panel data from Egypt. We first provide a diagnosis of dynamic worker flows across different labor market states. We develop transition probabilities by gender across different labor market states utilizing Markov transition processes. Next we identify the effects of individual, household, job characteristics and location on different mobility patterns by estimating a multinomial logit regression. The results point to the highly static nature of the Egyptian labor market. Government employment and the out of labor force are the most persistent labor market states. Further, only a few of the explanatory variables except high levels of education are found to have predictive power in explaining the transitions from formal wage, informal wage, self-employment, unemployment government employment and out of labor market states. 

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2015

  • 15/13 Global Constraints on Central Banking: The Case of Turkey
    Ahmet Benlialper and Hasan Cömert

  • 15/12 Intergenerational Educational Mobility in Turkey
    Aysıt Tansel

  • 15/11 The Myth of Profit-Shifting Trade Policies
    Onur A. Koska and Frank Stähler

  • 15/10 Emerging Markets Sovereign Bond Spreads, Credit Ratings and Global Financial Crisis
    Erdal Özmen and Özge Doğanay Yaşar

  • 15/09 The impacts of the 2008 global financial crisis on developing countries: the case of the 15 most affected countries
    Hasan Cömert and Esra Nur Uğurlu

  • 15/08 Is There an Informal Employment Wage Penalty in Egypt?
    Aysit Tansel, Halil Ibrahim Keskin and Zeynel Abidin Ozdemir

  • 15/07 Resources on the Stage: A Firm Level Analysis of the ICT Adoption in Turkey
    Derya Fındık and Aysıt Tansel

  • 15/06 Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey
    Derya Fındık and Aysıt Tansel

  • 15/05 Southwest as the New Internal Migration Destination in Turkey
    Ali T. Akarca and Aysıt Tansel

  • 15/04 2002 Sonrası Türkiye Ekonomisinin Performansı: Karşılaştırmalı Bir Analiz
    Ahmet Benlialper, Hasan Cömert and Güney Düzcay

  • 15/03 Inequality of Opportunities of Educational Achievement in Turkey over Time
    Aysıt Tansel

  • 15/02 Unemployment and Labor Force Participation in Turkey
    Aysıt Tansel, Zeynel Abidin Ozdemir and Emre Aksoy

  • 15/01 Determinants of Transitions across Formal/Informal Sectors in Egypt
    Aysit Tansel and Zeynel Abidin Ozdemir
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