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Household Income Structure and Determinants in Rural Egypt

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  • André Croppenstedt

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

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    Abstract

    Egypt is on track to achieve its long-term goal of reducing the poverty rate to 6 percent by 2022. Continued progress towards this goal will require rapid employment growth for which agriculture growth, through its impact on demand for goods and services in the rural non-tradable sector will be of fundamental importance. This paper considers which agricultural policies will be most effective at reducing rural poverty in Egypt . Using household survey data from 1997 the study analyzes household income structure and determinants. Results indicate that agricultural policies that help to raise unskilled labor wages and/or increase demand for unskilled labor as well as those that support small animal/bird raising, in particular poultry, are best suited to help the poor. A longer-term strategy must also focus on enhancing formal sector employment through increased access to education for men and in particular women.

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    Bibliographic Info

    Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 06-02.

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    Length: 22 pages
    Date of creation: 2006
    Date of revision:
    Handle: RePEc:fao:wpaper:0602

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    Related research

    Keywords: Egypt; household income structure; household income determinants; income distribution; rural sector.;

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    References

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    1. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, Elsevier, vol. 26(4), pages 315-331, August.
    2. Datt, Gaurav & Olmsted, Jennifer, 1998. "Agricultural wages and food prices in Egypt," FCND discussion papers 53, International Food Policy Research Institute (IFPRI).
    3. Newman, J.L. & Gertler, P.J., 1995. "Family Productivity, Labor Supply, and Welfare in a Low Income Country," Papers, RAND - Reprint Series 95-05, RAND - Reprint Series.
    4. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
    5. Rosenzweig, Mark R, 1980. "Neoclassical Theory and the Optimizing Peasant: An Econometric Analysis of Market Family Labor Supply in a Developing Country," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 94(1), pages 31-55, February.
    6. Janvry, Alain de & Sadoulet, Elisabeth, 2001. "Income Strategies Among Rural Households in Mexico: The Role of Off-farm Activities," World Development, Elsevier, vol. 29(3), pages 467-480, March.
    7. Rose, Elaina, 2001. "Ex ante and ex post labor supply response to risk in a low-income area," Journal of Development Economics, Elsevier, vol. 64(2), pages 371-388, April.
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