Abstract

Using household survey data, this paper examines the case of three villages in rural Egypt to shed light on the determinants of income distribution. We first employ decomposition techniques to identify the contribution of farm and non-farm income to overall household inequality. We then use regression analysis to identify the role of different factors in determining the level of farm and non-farm income. Based on the analysis of household income structure and its determinants, we clarify the strong effect of land holding on rural household income distribution, and the differing effects of non-agricultural employment opportunities through the linkage to non-agricultural labor markets. Overall, while non-farm employment is obviously an important determinant of income distribution in rural Egypt, the relationship between land, non-agricultural sector, and household income levels assume different patterns according to the specific socio-economic (village) setting.

Key words: Egypt, rural household, income distribution, land, case study.