Dina Abdallah

Abstract

One of the dilemmas about inequality in Egypt is that perception of inequality has always exceeded actual measures of inequality. Egyptians have long called for more equal income distribution while Gini coefficient according to income figures has maintained its same magnitude ranging from 37.8 percent to 36.6 percent in the last decade (World Bank, 2012). One claim to explain this puzzle is that inequality directly impacts on welfare; people feeling worse off compared to the rest of the economy. When it comes to welfare, consumption captures people utility better than income does. Using consumption expenditure data from different waves of Household Income and Consumption survey 1999-2013, this thesis investigates consumption inequality among different income groups in Egypt and found an improvement in consumption inequality overtime. In addition, we examine to what extent does inflation affect different income groups in Egypt. We find that differences in baskets of goods consumed, perceptions of necessities and luxuries and the fact that people do not pay the same prices for the same goods weaken CPI power in estimating the average consumer's cost of living. More accurate weighting for different consumption baskets based on income groups used throughout the thesis show statistically significant different inflation rates. One policy recommendation is to improve indexation policies because the lower income groups burden a proportional share of inflation.

Department

Public Policy & Administration Department

Degree Name

MA in Public Policy

Graduation Date

2-1-2016

Submission Date

January 2017

First Advisor

Ali, Hamid

Committee Member 1

Bouaddi, Mohamed

Committee Member 2

Atallah, Samer

Extent

56 p.

Document Type

Master's Thesis

Rights

The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.

Institutional Review Board (IRB) Approval

Not necessary for this item

Comments

Jameel Fellow

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