Interpreting Household Budget Surveys: Estimates for Poverty and Income Distribution in Egypt

Abstract Comparing Household Expenditure Survey data (1990/1991) for Egypt with expenditures in the national accounts, the study shows that Survey figures fall considerably short of the national accounts. The extent to which alternative assumptions for adjustments change inequality and poverty estimates is shown. Results of the study imply that poverty in Egypt affects between 43 and 49 per cent of the population, or up to 28 million people. This is much higher than stated in the literature, and it is shown that inequality is much more serious than commonly thought. Earlier estimates would seem to be based on a distortive calculation of per capita expenditure data, and failed to acknowledge the gap between Survey and national accounts.