Nonfarm Income, Inequality, and Poverty in Rural Egypt and Jordan [book]

Richard H. Jr. Adams
2001 Policy Research Working Papers  
This article uses decomposition analysis to examine the impact of different sources of income-including nonfarm income-on poverty and inequality in rural Egypt and Jordan. While nonfarm income reduces poverty and improves income distribution in Egypt, in Jordan nonfarm income goes mainly to the rich and thus tends to increase rural inequality. The reasons for this difference have to do with land. In Egypt land is highly productive, but the poor lack land access and are thus "pushed" to work in
more » ... pushed" to work in the nonfarm sector. However, in Jordan land is not very productive and so the rich are "pulled" by more attractive rates of return into the nonfarm sector.
doi:10.1596/1813-9450-2572 fatcat:c5tqmwwyprerpar4stla2qv73u