Labor productivity differed to a large extent across economic activities. For instance,
over the period FY85–FY08, the mining sector had one of the highest real labor productivity
(LE 879,000), while the least productive sector was the agriculture sector with real labor
productivity of LE 1,500. However, the dilemma that Egypt faces is that its wage structure is
incompatible with the labor productivity level. For example, although real AW of the
transportation sector is almost equal to that of the electricity sector, the real labor productivity
of the electricity sector is only 60 percent of the transportation sector. Such variations in the
productivity level across economic activities should be reflected in MW and wage structure,
which suggests the implementation of a multiple MW policy (Tauchen 1981; Muller 2010