Monday, September 10, 2007

An interesting survey

The department of statistics has released a new comparative study on income and spending by Jordanian families and individuals. The study compares income and spending patterns between 2002 and 2006. The study is based on a survey of 12792 families from all over the country. It shows that average income levels for families rose during this period from 5590 to 6220 dinars per year. At the same time, average spending rose from 6206 to 7550 dinars per year.

In 2006, 36.5% of the average expenditure was on food and tobacco products. Much of this was on meat and poultry (7.85%).

Non-food expenditures were dominated by housing (about 1200 dinars per year) and transportation and communication (also about 1200 dinars per year). It is unfortunate that communications and transportation were not separated out. It is estimated that cell phone revenues for 2007 will be 517 million USD (361.9 million dinars). Assuming about 1 million families in the country, cellular phones account for an average of about 360 dinars per year per family. 37.1% of households own cars.

The study shows that the wealthiest 10% of the population accounted for 26.7% of spending, whereas the poorest 10% only accounted for 3.3% of the spending. 36.2% of families have incomes of less than 5000 dinars per year whereas only 7.3% of families make more than 15000 dinars per year. The Gini coefficient (a measurement of income disparity) was calculated to be 0.399, up from 0.391 in 2002, suggesting more disparity with time.

The average spending on cigarettes is 270 dinars per family.

How is the deficit spending supported? The survey suggests that selling property covers 15.6% of the shortfall. The report also suggests that there may be a tendency to over report spending and under report income on the part of the respondents.

So there it is; a profile that shows the poverty, the affluence, and the priorities. In short, it shows what’s up in Jordan.


At 1:52 AM, Blogger Unknown said...

it'll be interesting to see if the same tendency to over and under report would happen in a 3rd party survey.

thanks for this - very interesting post.

At 2:04 AM, Blogger Unknown said...

according to world inequalities

.399 is not so bad. it's better than the US

what I do not understand, is when surveys claim that Amman is the most expensive city in the arab world - how can people who get only 500JD/month live?

At 5:41 AM, Blogger Khalaf said...

Arrabi: Thanks. If you look at the Gini index map, the most egalitarian states (in Scandinavia and Japan) have the highest tax rates. On the other hand, they spend heavily on national health care, welfare and other social programs. I would like to find a map showing tax burdens around the world.

As for your question about living in Amman, I think that the answer would be to try saving money on housing (living in an old family house, in a poor area or outside the city). Another strategy would be to save money on transportation by using public transportation (such that it is). A third strategy would be to use public schools and hospitals. In short, it can be done and is done. I am sure it is not particularly pleasant, though.


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