nep-ara New Economics Papers
on Arab World
Issue of 2010‒09‒18
two papers chosen by
Quentin Wodon
World Bank

  1. The Dynamics of Poverty and Inequality in an Era of Economic Liberalization: The Case of Egypt By Shireen Al Azzawi
  2. Happiness and Financial Satisfaction in Israel: Effects of Religiosity, Ethnicity, and War By van Praag, Bernard M. S.; Romanov, Dmitri; Ferrer-i-Carbonell, Ada

  1. By: Shireen Al Azzawi (Department of Economics, Santa Clara University)
    Abstract: This paper provides a detailed analysis of the dynamics of moving in and out of poverty and inequality in Egypt, utilizing a recent, nationally representative panel survey. It studies the dynamics of poverty using both measures of income and measures of consumption. This provides an opportunity to compare poverty measures and dynamics using these two related, but not identical measures of economic well being. It also shows the difference between urban and rural families, and the use of region specific poverty lines. Regression methods are used to identify the determinants of chronic and transitory poverty over this period in Egypt, and the determinants of moving between and within income groups. The ultimate goal of this paper is to devise and recommend a set of high impact short term policies with immediate measurable results as opposed to grander schemes.
    Date: 2010–09
  2. By: van Praag, Bernard M. S. (University of Amsterdam); Romanov, Dmitri (Central Bureau of Statistics, Israel); Ferrer-i-Carbonell, Ada (IAE Barcelona (CSIC))
    Abstract: We analyze individual satisfaction with life as a whole and satisfaction with the personal financial situation for Israeli citizens of Jewish and Arab descent. Our data set is the Israeli Social Survey (2006). We are especially interested in the impact of the religions Judaism, Islam and Christianity, where we are able to differentiate between individuals who vary in religiosity between secular and ultra-orthodox. We find a significant effect of religiosity on happiness. With respect to Jewish families it is most striking that the impact of family size on both life and financial satisfaction seems to vary with religiosity. This might be a reason for differentiation in family equivalence scales. For Arab families we did not find this effect. First-generation immigrants are less happy than second-generation immigrants, while there is no significant difference between second-generation families and native families. The effect of the Lebanon War is much less than expected.
    Keywords: happiness, subjective well-being, financial satisfaction, Israel, religion, immigration, terrorism
    JEL: H56 I31 N35 N45 R23 Z12
    Date: 2010–09

This nep-ara issue is ©2010 by Quentin Wodon. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.