Robust Poverty and Inequality Measurement in Egypt: Correcting for Spatial-Price Variation and Sample Design Effects

16 Pages Posted: 2 Nov 2004

See all articles by Dean Jolliffe

Dean Jolliffe

World Bank; IZA Institute of Labor Economics

Gaurav Datt

World Bank - Development Research Group (DECRG)

Manohar Sharma

International Food Policy Research Institute (IFPRI)

Abstract

The paper estimates inequality and absolute poverty in Egypt for 1997 with measures that are robust to sample design effects and corrected for spatial variation in price levels. Standard errors for inequality indices are calculated using a bootstrap approach which replicates the sample design. Standard errors for poverty indices are corrected for the design effects resulting from sample stratification and clustering. The authors use data from the Egypt Integrated Household Survey and follow the cost-of-basic-needs methodology to construct region-specific poverty lines. It is found that 15.7 million people were poor in Egypt in 1997, or 26.5% of the population. The estimates indicate a sharp sectoral difference with rural areas being significantly poorer, but significant differences in poverty were not found between Upper and Lower Egypt. This finding differs substantially from the conventional wisdom that Upper Egypt is poorer than Lower Egypt and results from the correction for spatial-price variation.

Suggested Citation

Jolliffe, Dean Mitchell and Datt, Gaurav and Sharma, Manohar, Robust Poverty and Inequality Measurement in Egypt: Correcting for Spatial-Price Variation and Sample Design Effects. Review of Development Economics, Vol. 8, No. 4, pp. 557-572, November 2004. Available at SSRN: https://ssrn.com/abstract=610466

Dean Mitchell Jolliffe (Contact Author)

World Bank ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

HOME PAGE: http://www.deanjolliffe.net

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/en/webcontent/index_html

Gaurav Datt

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Manohar Sharma

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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