The Dynamics of Social Insurance in Egypt

Social insurance coverage is low and declining in Egypt. This paper uses panel data, spanning 1998–2023, to assess the dynamics behind these trends in social insurance coverage. The results highlight not only the decline of social insurance coverage but an informality trap: over time workers are less likely to gain social insurance at entry or while remaining employed, and they are increasingly likely to lose social insurance. One reason for the decline in social insurance may be the low value workers place on coverage; the unemployed average the same reservation wages for jobs with and without social insurance coverage.