Social and Behavioral Sciences Commons^™

The Impact Of Labor Market Reforms On Informality In Egypt, Jackline Wahba

Poverty, Gender, and Youth

Egypt has undergone a number of economic reform measures since the early 1990s, with the aim of liberalizing the economy and moving toward a market economy. As a result, among other measures, the Egyptian government has introduced a new labor law (No. 12) with the goal of increasing flexibility in the labor market. Law 12, which came into effect in July 2003, provides comprehensive guidelines for the recruitment, hiring, compensation, and termination of employees. In particular, it provides increased flexibility for firms in the hiring/firing process, which has been a major bottleneck for job creation in the Egyptian labor market. …