Working Papers

Employment, Budget Priorities and Microenterprises

Publication Number: ECESWP69-E

July, 2002

Author : Heba Handoussa

Type : Working Papers

There have been several systematic inquiries into how Egypt’s labor market functions over the past few decades, and the various approaches and perspectives have reinforced a consensus view in the diagnosis of the country’s labor problems. This paper starts out by noting that beyond the convergence of views on symptoms and causes, much of the available analytical assessments of employment and unemployment are short on providing practical remedies. The purpose of this essay is to reflect on current conditions in Egypt’s labor market and to examine a number of existing opportunities to exploit in favor of a new and innovative path for growth and development. What is proposed is a framework that adopts a cost-benefit approach, using budget data to measure alternative cost scenarios, and labor force statistics to compare and contrast the contribution of occupations and activity sectors in job creation.