The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt
The COVID-19 pandemic impacted the Arab Republic of Egypt’s economy and its people in many ways. By combining micro-simulations and imputation techniques, this paper models early impacts of the pandemic on household income and the role of cash transfers from the Government of Egypt in supporting households and workers. As expected, and consistent with other evidence, the estimates show that the pandemic shock decreased labor incomes and increased income poverty in Egypt. It was estimated that in fiscal year 2020, average household income per capita contracted by about 1.7 percent, and income poverty was about 2.2 percentage points higher, compared to a non-COVID-19 scenario for the same year, using the international poverty line of $3.65 a day (2017 purchasing power parity). Labor income losses were widespread across the country, disproportionately affecting informal workers. The results also suggest that expanded social protection cash transfers and targeted cash assistance to Egypt’s informal and tourism sectors played a substantial role in smoothing the initial labor income shock. In the absence of compensatory cash transfers, income poverty would have been 1.1 percentage points higher. The compensatory measures, in particular the cash transfer programs Takaful and Karama, preferentially protected rural households due to the programs’ targeting rules. Thus, households in urban areas were significantly more likely to become income poor, compared to those in rural settings.
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Format: | Working Paper biblioteca |
Language: | English English |
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World Bank, Washington, DC
2023-05-16
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Subjects: | COVID-19 PANDEMIC IMPACT, MICROSIMULATION, INCOME POVERTY, LABOR INCOME, CASH TRANSFER, TARGETED CASH TRANSER TO INFORMAL WORKERS, TRANSFERS TO TOURISM WORKERS, |
Online Access: | http://documents.worldbank.org/curated/en/099510005092319513/IDU03a208a5c0b3210421509d7e0dbc1ff0a1f60 https://openknowledge.worldbank.org/handle/10986/39812 |
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dig-okr-10986398122024-03-11T19:21:59Z The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt Gansey, Romeo Genoni, Maria Eugenia Helmy, Imane COVID-19 PANDEMIC IMPACT MICROSIMULATION INCOME POVERTY LABOR INCOME CASH TRANSFER TARGETED CASH TRANSER TO INFORMAL WORKERS TRANSFERS TO TOURISM WORKERS The COVID-19 pandemic impacted the Arab Republic of Egypt’s economy and its people in many ways. By combining micro-simulations and imputation techniques, this paper models early impacts of the pandemic on household income and the role of cash transfers from the Government of Egypt in supporting households and workers. As expected, and consistent with other evidence, the estimates show that the pandemic shock decreased labor incomes and increased income poverty in Egypt. It was estimated that in fiscal year 2020, average household income per capita contracted by about 1.7 percent, and income poverty was about 2.2 percentage points higher, compared to a non-COVID-19 scenario for the same year, using the international poverty line of $3.65 a day (2017 purchasing power parity). Labor income losses were widespread across the country, disproportionately affecting informal workers. The results also suggest that expanded social protection cash transfers and targeted cash assistance to Egypt’s informal and tourism sectors played a substantial role in smoothing the initial labor income shock. In the absence of compensatory cash transfers, income poverty would have been 1.1 percentage points higher. The compensatory measures, in particular the cash transfer programs Takaful and Karama, preferentially protected rural households due to the programs’ targeting rules. Thus, households in urban areas were significantly more likely to become income poor, compared to those in rural settings. 2023-05-16T13:42:59Z 2023-05-16T13:42:59Z 2023-05-16 Working Paper http://documents.worldbank.org/curated/en/099510005092319513/IDU03a208a5c0b3210421509d7e0dbc1ff0a1f60 https://openknowledge.worldbank.org/handle/10986/39812 English en Policy Reserch Working Papers; 10440 CC BY 3.0 IGO https://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain World Bank, Washington, DC |
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COVID-19 PANDEMIC IMPACT MICROSIMULATION INCOME POVERTY LABOR INCOME CASH TRANSFER TARGETED CASH TRANSER TO INFORMAL WORKERS TRANSFERS TO TOURISM WORKERS COVID-19 PANDEMIC IMPACT MICROSIMULATION INCOME POVERTY LABOR INCOME CASH TRANSFER TARGETED CASH TRANSER TO INFORMAL WORKERS TRANSFERS TO TOURISM WORKERS |
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COVID-19 PANDEMIC IMPACT MICROSIMULATION INCOME POVERTY LABOR INCOME CASH TRANSFER TARGETED CASH TRANSER TO INFORMAL WORKERS TRANSFERS TO TOURISM WORKERS COVID-19 PANDEMIC IMPACT MICROSIMULATION INCOME POVERTY LABOR INCOME CASH TRANSFER TARGETED CASH TRANSER TO INFORMAL WORKERS TRANSFERS TO TOURISM WORKERS Gansey, Romeo Genoni, Maria Eugenia Helmy, Imane The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt |
description |
The COVID-19 pandemic impacted the
Arab Republic of Egypt’s economy and its people in many
ways. By combining micro-simulations and imputation
techniques, this paper models early impacts of the pandemic
on household income and the role of cash transfers from the
Government of Egypt in supporting households and workers. As
expected, and consistent with other evidence, the estimates
show that the pandemic shock decreased labor incomes and
increased income poverty in Egypt. It was estimated that in
fiscal year 2020, average household income per capita
contracted by about 1.7 percent, and income poverty was
about 2.2 percentage points higher, compared to a
non-COVID-19 scenario for the same year, using the
international poverty line of $3.65 a day (2017 purchasing
power parity). Labor income losses were widespread across
the country, disproportionately affecting informal workers.
The results also suggest that expanded social protection
cash transfers and targeted cash assistance to Egypt’s
informal and tourism sectors played a substantial role in
smoothing the initial labor income shock. In the absence of
compensatory cash transfers, income poverty would have been
1.1 percentage points higher. The compensatory measures, in
particular the cash transfer programs Takaful and Karama,
preferentially protected rural households due to the
programs’ targeting rules. Thus, households in urban areas
were significantly more likely to become income poor,
compared to those in rural settings. |
format |
Working Paper |
topic_facet |
COVID-19 PANDEMIC IMPACT MICROSIMULATION INCOME POVERTY LABOR INCOME CASH TRANSFER TARGETED CASH TRANSER TO INFORMAL WORKERS TRANSFERS TO TOURISM WORKERS |
author |
Gansey, Romeo Genoni, Maria Eugenia Helmy, Imane |
author_facet |
Gansey, Romeo Genoni, Maria Eugenia Helmy, Imane |
author_sort |
Gansey, Romeo |
title |
The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt |
title_short |
The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt |
title_full |
The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt |
title_fullStr |
The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt |
title_full_unstemmed |
The Role of Cash Transfers in Smoothing the Income Shock of COVID-19 in the Arab Republic of Egypt |
title_sort |
role of cash transfers in smoothing the income shock of covid-19 in the arab republic of egypt |
publisher |
World Bank, Washington, DC |
publishDate |
2023-05-16 |
url |
http://documents.worldbank.org/curated/en/099510005092319513/IDU03a208a5c0b3210421509d7e0dbc1ff0a1f60 https://openknowledge.worldbank.org/handle/10986/39812 |
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