Rental Regulation and its Consequences on Measures of Well-Being in the Arab Republic of Egypt

25 Pages Posted: 24 Jul 2017 Last revised: 7 Aug 2017

See all articles by Gabriel Lara Ibarra

Gabriel Lara Ibarra

The World Bank - Poverty and Equity Global Practice

Vibhuti Mendiratta

World Bank - Poverty and Equity Global Practice

Tara Vishwanath

World Bank - Economic Development Institute

Date Written: July 20, 2017

Abstract

The paper delves into the implications of a failure to account for rental regulation in the measurement of households' welfare, poverty, and inequality when using household surveys. Exploiting previously unavailable data for the Egyptian case, the paper illustrates the long-lasting distortions in the rental market that the 1977 rental law has created. The paper finds evidence that earlier studies may have substantially underestimated households' welfare in urban areas and overestimated urban poverty. National poverty rates show smaller corrections, as poverty is mainly a rural phenomenon in the Arab Republic of Egypt. An appropriate measure of welfare also led to downward corrections in inequality in urban Egypt, while increasing the inequality across regions. These effects counterbalance each other and nationwide inequality estimates are affected only slightly.

Keywords: Urban Governance and Management, Poverty Lines, Poverty Diagnostics, Poverty Monitoring & Analysis, Poverty Impact Evaluation, Small Area Estimation Poverty Mapping, Municipal Management and Reform, Urban Housing and Land Settlements, Poverty Assessment

Suggested Citation

Lara Ibarra, Gabriel and Mendiratta, Vibhuti and Vishwanath, Tara, Rental Regulation and its Consequences on Measures of Well-Being in the Arab Republic of Egypt (July 20, 2017). World Bank Policy Research Working Paper No. 8152. Available at SSRN: https://ssrn.com/abstract=3006225

Gabriel Lara Ibarra (Contact Author)

The World Bank - Poverty and Equity Global Practice ( email )

1818 H St NW
Washington, DC 20433
United States

Vibhuti Mendiratta

World Bank - Poverty and Equity Global Practice ( email )

1818 H Street, NW
Washington, DC 20433
United States

Tara Vishwanath

World Bank - Economic Development Institute ( email )

1818 H Street
Washington, DC 20433
United States
202-473-1152 (Phone)

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