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Globalization and Human CapitalOne of the importantchanges in theEgyptian labormarket, especiallyunder the ERSAP, isthe decrease in realwages● The share of professionals, scientistsand managers in total employedpersons increased from 8.6 per cent toabout 14 per cent and to 28 per centrespectively,● Clerical workers and the like increasedfrom 7.3 per cent to 8.8 per cent, andthen decreased to 7.2 per cent,● Sales and services workers decreasedfrom 15 per cent to 12.5 per cent andto 9.3 per cent,● Workers in agriculture and fisheriesdecreased from 42 per cent to 37.8 percent, and then to 30 per cent,● Production workers and the likeincreased from 21.4 per cent to 24.3per cent and then to 24.7 per cent.The Real Wage LevelOne of the important changes in theEgyptian labor market, especially under theERSAP, is the decrease in real wages after along period of increase between the mid1970s and the mid 1980s as an outcome ofthe impact of the oil boom. Data shown inTable (6.3) reveals that real wage rates in alleconomic activities during the mid 1990shardly exceeded two-thirds of their level inthe mid 1980s. It can be also observed thatthe deterioration in the level of real wagesTable (6-3)Trends in Average Nominal and Real Wages by Sectors and Economic Activity, 1987-1996Agriculture andFisheriesMining andQuarryingManufacturingElectricity,Gas and WaterConstructioTrade andHotelsTransportand StorageFinance,Insurance andBus. Serv.Soc. andpers. Serv.AllActivitiesEconomicActivitiesSectorsPuPrTPuPrTPuPrTPuPrTPuPrTPuPrTPuPrTPuPrTPuPrTPuPrTN27172549645938373830333040464034363434493638112493931333742381987R25.115.823.345.659.654.935.434.535.427.930.727.937.242.837.231.733.531.731.745.633.535.4104.345.636.328.930.734.539.135.4N5651541092491657972776495658514488846677831238895210120626363818482R17.816.317.234.779.352.625.222.924.520.430.320.727.145.928.026.821.024.526.539.228.030.366.938.219.820.120.125.826.826.1Notes: (1) Pu=Public, Pr=Private, T = Total, N=Nominal, R = Real.(2) Real Wages are calculated using Urban CPI for year 1986 = 100; National Bank, Economic Bulletin, vol.51, No. 3, 1998.(3) Public Sector includes Public Enterprises.(4) Private Sector: Etablishments using 10 workers or more.(5) In 1996 the classification of Economi Activities is different in CAPMAS data from previous years. In thatyear the data are more detailed for Agriculture, Trade, Finances, Social and Personal Services. For thepurpose of accurate comparison, we calculated the average nominal wage in each of the four activities asan average of the sub-activities in that year.19941996 % of change 1987-1996N R N R74596412927818110276938811988100931001068283111119112107230170738894103919919.815.817.134.574.348.427.320.324.923.531.823.526.724.926.728.321.922.229.731.829.928.661.545.419.523.525.127.524.326.5174.1247.1156.0163.3334.4206.8168.4105.4144.7193.3260.6193.3150.0102.2150.0211.8127.8144.1226.5142.9211.1181.6105.4246.987.2183.9184.8178.4116.7160.5-21.10.0-26.6-24.324.6-11.8-22.9-41.2-29.7-15.83.6-15.8-28.2-41.8-28.2-10.7-34.6-30.0-6.3-30.2-10.7-19.2-41.0-0.4-46.3-18.7-18.2-20.3-37.9-25.198 -Egypt Human Development Report 2000/2001