Distributing Disposable Income and The Impact of Eliminating Food Subsidies in Egypt

Title

Distributing Disposable Income and The Impact of Eliminating Food Subsidies in Egypt

Authors

Karima Korayem

Files

Department

Cairo Papers in Social Science

Program

Cairo Papers in Social Science

Description

While both papers in this issue were written on different occasions, both discuss factors relating to the standard of living of the Egyptian pop­ulation, namely, income and consumption. They, therefore are sufficiently related to comprise a single monograph. The income distribution paper shows that a large proportion of the pop­ulation falls in the relatively low income brackets. The second paper, a subject of intensive public debate at present, shows how important food sub­sidy is in keeping down the cost of living of the low-income urban popula­tion. For example, it has been found that almost one-third of the urban population devote at least one-quarter of their total consumption expendi­ture to the main subsidized food items. The main objective of the income distribution paper is to provide de­pendable estimates of income distribution in the urban and rural sectors in Egypt. The consumption expenditure data of the Households Budget Survey 1974/75 have been used as the basis of these estimates. The objective of the second paper is twofold. First, it tries to find out how significantly the cost of living of the urban population will be affected if food subsidies are eliminated. This is done by examining both the direct and the indirect effects of the removal ot food subsidies on the urban cost of living. Second, same alternative measures are examined which might provide a better substi­tute for the prevailing subsidy system.

Publication Date

Spring 1982

Publisher

American University in Cairo Press

City

Cairo

Keywords

Egypt, subsidies, food, disposal, income, rural, urban, consumption

Series

Cairo Papers in Social Science 5(2)

Distributing Disposable Income and The Impact of Eliminating Food Subsidies in Egypt

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