Nonfarm income, inequality, and poverty in rural Egypt and Jordan

Richard H. Adams

Nonfarm income has a greater impact on poverty and inequality in Egypt than in Jordan. In rural Egypt the poor receive almost 60 percent of their income from nonfarm sources, while in rural Jordan they receive less than 20 percent. The reason for this difference is land: in rural Egypt, agricultural land is very productive, but access is quite limited, and so the poor are "pushed" into nonfarm work; while in rural Jordan, land is not very productive and access is not highly prized. In both countries the best way to reduce poverty and inequality might be to focus on nonfarm unskilled labor.