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Economic Brief - Employment and Productivity Growth in Egypt in a Period of Structural Change 2001-2008


Key messages

• The private sector was the main source of employment absorption, while the public sector witnessed declines in employment in almost all activities. MSEs represent around 96% of all enterprises in Egypt, and employ around 70% of the private non-agricultural workers. Within those enterprises the informal MSEs constitute the majority of enterprises (78%).

• The movement of labor from low productivity to high productivity economic activities, the "between" effects, were the main determinants of labor productivity changes in most activities. However, analysis also revealed that in economic activities such as Agriculture, Construction, Communication, and Community/ Social Services, the "within” effects through capital injections and/or technology advancement played a relevant role in explaining their labor productivity growth.

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