There is potential for measurement problems in both retrospective and panel microdata. In this paper, we compare results on basic indicators related to labor markets and their dynamics from retrospective and panel survey data in Egypt, in order to determine the conditions under which results are similar or different. Specifically, we (1) assess the consistency of reporting of time-invariant characteristics in different waves of the panel, (2) compare the retrospective and panel data results on past labor market statuses, (3) assess the consistency of estimates of labor market transition rates across two specific dates by comparing panel and retrospective data, (4) assess the consistency of estimates of the level and trends of annual labor market transition rates across retrospective data from different waves of the survey, and (5) assess whether retrospective data can provide accurate trends of labor market aggregates, such as unemployment rates. We find that it is possible to garner useful information on labor market dynamics from retrospective data, but one must be cautious about which information to trust and at what level of detail. We conclude with a discussion of implications for future research as well as future survey design.

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BACKGROUND Despite rapidly rising female educational attainment and the closing, if not reversal, of the gender gap in education, female labor force participation rates in the Middle East and North Africa (MENA) region remain low and stagnant. This phenomenon is known as the MENA paradox. Even if increases in participation are observed, they are typically in the form of rising unemployment rather than employment. METHODS We use multinomial logit models, estimated by country, on annual labor force survey data for four MENA countries-Algeria, Egypt, Jordan, and Tunisia-to simulate trends in female participation in different labor market states (public sector, private wage work, non-wage work, unemployment, and nonparticipation) for married and unmarried women and men of a given educational and age profile. RESULTS Our results confirm that the decline in the probability of public sector employment for educated women is associated with either an increase in unemployment or a decline in participation. CONCLUSIONS We argue that the MENA paradox can be primarily attributed to the change in opportunity structures facing educated women in the MENA region in the 2000s rather than to the supply-side factors traditionally emphasized in the literature.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Informality, Public Employment and Employment Protection in Developing Countries SEPTEMBER 2017Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.Schaumburg-Lippe-Straße 5-9 53113 Bonn, Germany Phone: +49-228-3894-0 Email: publications@iza.org www.iza.org IZA -Institute of Labor Economics DISCUSSION PAPER SERIESIZA DP No. 11014 sectors. It becomes more profitable for workers to search on-the-job, in order to move to these more attractive and more stable types of jobs. The public sector therefore acts as an additional tax for the formal private firms. Using data on workers' flows from Egypt, we show empirically and theoretically that the liberalization of labor markets plays against informal employment by increasing the profitability, and hence job creations, of formal jobs. The latter effect is however dampened or even sometimes nullified by the increase of the offered wages in the public sector observed at the same time. Informality, Public Employment and Employment Protection in Developing Countries SEPTEMBER 2017 Shaimaa Yassin University of Lausanne (DEEP) and University of Le Mans (GAINS-TEPP) François Langot University of Le Mans (GAINS-TEPP, IRA), Paris School of Economics JEL Classification:E24, E26, J60, J64, O17