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,...

Policymakers interested in reducing poverty and improving income distribution in rural Egypt should focus on nonfarm income, which not only accounts for almost 60 percent of total income for the rural poor but also favorably affects income distribution. Nonfarm income is an inequality-reducing...