Measuring lnequality in the Middle East 1990–2016: The World’s Most Unequal Region?

Abstract

In this paper we combine household surveys, national accounts, income tax data and wealth data in order to estimate income concentration in the Middle East for the period 1990–2016. According to our benchmark series, the Middle East appears to be the most unequal region in the world, with a top decile income share as large as 64 percent, compared to 37 percent in Western Europe, 47 percent in the US and 55 percent in Brazil (see Alvaredo et al. 2018). This is due both to enormous inequality between countries (particularly between oil‐rich and population‐rich countries) and to large inequality within countries (which we probably under‐estimate, given the limited access to proper fiscal data). We stress the importance of increasing transparency on income and wealth in the Middle East, as well as the need to develop mechanisms of regional redistribution and investment.

On the ‘Arab Inequality Puzzle’: The Case of Egypt

“…In that regard, it approves the reservations on household surveys expressed by several researchers, referring to Alvaredo et al. (2017) in particular. However, since ‘it is plausible to assume that the underestimation of inequality due to missing top incomes does not vary much over time and across countries’ (ESCWA, 2018: 31), the report uses the available data for a comparison across time and countries that is its main focus.…”

Low cost carriers in the Middle East and North Africa (MENA) region: Emergence and barriers to development

“…The percentage of middle-class people in the region is extremely diverse. According to a benchmark study by Alvaredo et al (2019), which was based on household surveys, national accounts and income tax and wealth data for the years 2020-2016, the Middle East is the world's most unequal region. The top decile income share in the Middle East region as defined by the authors (Arabian Peninsula, Egypt, Levant (except Cyprus and Israel), Iran, Iraq, Turkey) amounts to 64%, compared to 37% in Europe, while the bottom 50% of the population receives just 9% of total income, compared to 18% in Europe.…”

The Islamic economy: its origin, its world view and its claims

“…For all the quotes from the Hadith that fill the pages of publications by the likes of al-Qaradawi, the Islamic world, and especially the Middle East, cuts a relatively poor figure when it comes to income distribution. A study on incomes and income distribution in the Middle East shows that the region does worse than other regions in the world (Alvaredo et al 2017). Admittedly, such figures should be interpreted with some caution, countries from the Middle East, and North Africa for that matter, do not cut such a poor figure if we look at Gini coefficients of income or consumption distributionbut on the other hand the rich may have all kinds of wealth and income items that stay below the radar of statistical bureaus (not only in the Middle East).…”