THE IMPACT OF INFORMAL ECONOMY ON THE EMPLOYMENT IN EGYPT: evidence from ARDL model

Abstract

This study analyzes the impact of informal economy on the employment in Egypt using ARDL model to test the long run relationship between the two variables. Data is collected from World Bank and ILO for the variables in estimation from (1991 – 2021), the results show that there is a long run relationship between the two variables, depending on the available data, therefore the study recommends fostering the process of integrating informal economy into formal economy to enhance the employment sector directly and to enhance the macroeconomic indicators indirectly, as the Egyptian economy has a special nature regarding its demographic characteristics, and its workforce