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The 1995/1996 Household Income, Expenditure - (PDF, 101 mb ...

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Frequency (<strong>Household</strong>s) of the Nu<strong>mb</strong>er of Sources of <strong>Income</strong><br />

No. OF<br />

SOURCES<br />

1<br />

2<br />

3<br />

4<br />

5<br />

Frequency<br />

1407<br />

5227<br />

4851<br />

2218<br />

778<br />

Percent<br />

9.5<br />

35.3<br />

32.8<br />

15.0<br />

5.3<br />

Cumulative<br />

Frequency<br />

1407<br />

6634<br />

11485<br />

13703<br />

14481<br />

I1.G <strong>Income</strong> Characteristics: <strong>Household</strong> Average <strong>Income</strong>s from Sources<br />

11.9<br />

Cumulative<br />

Percent<br />

9.5<br />

44.8<br />

77.6<br />

92.6<br />

97.8<br />

Table n.6 categorizes incomes from six sources. <strong>The</strong> sum of all<br />

household income sources is an average annual income total of 7570.05 £E.<br />

This means that income is, on average, 911.45 £E higher than total<br />

expenditures (Table 11.2), indicating that savings are being accumulated. <strong>The</strong><br />

more important sources of incomes are incomes from wages and salaries, nonagricultural<br />

projects (typically these are small scale enterprises operated<br />

either from the household or very close to it) and agricultural work. Total<br />

income is measured with more error than total expenditures, but, compared to<br />

the previous RIECS, the error level is reasonable and acceptable.<br />

In the 1990/1991 HIECS average total household expenditures was 5143.39<br />

£E and average total incomes was 5708.90 £E. <strong>The</strong> first inquiry therefore<br />

suggests itself: How have Egyptian households fared over the last five years?<br />

<strong>The</strong> question is hardly a simple one to answer given changes in the value of<br />

the Egyptian pound, errors of measurement, changes in household sizes, and<br />

savings ratios, etc. At the very least households should be standardized for<br />

their compositions before comparing them, and then critical household estimate<br />

levels should be adjusted by some measurement of inflation to produce trreal"<br />

expenditures and incomes.<br />

<strong>The</strong> six sources of income are further categorized by region in Table<br />

n.7. In a nu<strong>mb</strong>er of cases, the coefficients of variation are unacceptably<br />

large, making first-sight comparisons difficult both between areas and within<br />

sources. Wages do not seem to be as prone to measurement error as other<br />

sources. <strong>Household</strong> average incomes from all sources are highest in Port Said<br />

and Suez (the "Other Urban" region) and Cairo. <strong>The</strong> confidence bounds for<br />

the Frontier is wider than 9000 £E, which casts doubt on the Frontier's high<br />

income status.<br />

H.R Regarding Remittances<br />

Private remittances are partly comprised of monies received by the<br />

household from persons living abroad. Official remittances are government<br />

cash grants and in-kind payments to Egypt. Private and official remittances<br />

together represent a large part of Egypt's export income. Al Abram, July 9,<br />

<strong>1996</strong>, stated that "remittances (both official and private assumed) were 5<br />

billion £E annually, 12% of GDP." <strong>The</strong> value given for private remittances in<br />

Central Bank of Egypt (<strong>1996</strong>, Table 1/6, p. 162) is $75 million. In 1993, private<br />

remittances were twice the value of merchandise exports (World Bank (<strong>1995</strong>».<br />

HIECS results can be compared with private remittances considered as<br />

an inflow, I.e., not Egyptian workers remittances to other countries. ,Only

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