Economic Research Forum (ERF)

Socio-economic inequality across religious groups in Egypt

3983
Socio-economic inequality across religious groups has been at the centre of public debate in the Middle East for decades. This column argues for the value of taking a longer historical perspective: in Egypt, for example, inequality is not simply a consequence of postcolonial policies but rather has colonial and, perhaps more importantly, long-standing pre-colonial roots.

In a nutshell

Understanding the facts about inter-religious inequality in Egypt in the pre-colonial and colonial periods – and how it was altered by postcolonial public policies – is of the utmost importance for an informed public debate on the topic.

The Middle East possesses exceptionally detailed microdata sources on inter-religious socio-economic inequality, which can help to document the evolution of inequality and socio-economic differences across sub-denominations within the same religious group.

In Egypt, the population censuses that extend from 1848 through to 2016 provide an extraordinary microdata source that allows the examination of occupational and educational inequality across groups over time.

Socio-economic inequality across religious groups has been at the centre of public debate in the Middle East for decades. Inter-religious tensions between local non-Muslim minorities and the Muslim majority, and across sub-denominations within Muslims and non-Muslims, were among the major sources of social segmentation throughout the history of the region, reaching the level of civil war in Lebanon over the period from 1975 to 1990.

Such tensions were often ignited by inter-religious conflicts over the distribution of political power and economic sources, and they have made the democratic transition of the region extremely challenging.

Yet understanding the current inter-religious inequality in the region arguably requires a longer historical perspective. Inequality is not simply a consequence of postcolonial policies but rather has colonial and, perhaps more importantly, pre-colonial roots.

But scholarship on the economic and social history of the region in general has been lagging behind its counterparts in North America, Western Europe and even other parts of the developing world such as Asia and Latin America – and scholarship on inequality is no exception.

To be sure, it has been long documented in economic history research that local non-Muslim minorities of the Middle East, including Christians and Jews, enjoyed better socio-economic outcomes in terms of educational and occupational attainment than the Muslim majority. But this body of evidence was, for the most part, qualitative, and it lacked a long-run and detail-oriented perspective that documents the evolution of inequality over time and the socio-economic differences across sub-denominations within the same religious group.

Perhaps due to the sensitivity of the topic and a general ‘perceived’ lack of data sources within both academic and non-academic circles, the basic facts on inter-religious socio-economic inequality have been mostly lacking and were thus left to mere speculation.

Issues as simple as the population share of non-Muslims are often considered taboo. In Egypt, the most populous country in the region, a widely circulated figure of non-Muslims’ population share is 10%, but, to the best of my knowledge, the figure is based on an unknown data source, and apparently is mere speculation.

Nevertheless, contrary to widespread belief, the Middle East possesses an exceptionally long and detailed series of microdata sources on inter-religious socio-economic inequality. In Egypt, the population censuses that extend from 1848 through to 2016 provide an extraordinary microdata source that allows examination of occupational and educational inequality across groups over time.

In Saleh (2015), I provided quantitative evidence on this phenomenon by drawing on a unique data source: two nationally representative, individual-level samples of Egypt’s population census manuscripts of 1848 and 1868 that I digitised with the help of a data entry team at the National Archives of Egypt in 2009-10 (Saleh 2013).

Conducted under Muhammad Ali Pasha, the autonomous Ottoman viceroy of Egypt from 1805 to 1848, and his grandson Ismail (who reigned from 1863 to 1879), these two censuses are among the earliest pre-colonial population censuses from any non-Western country to include information on all segments of the society, including women, children and slaves.

The census samples reveal that Egypt’s non-Muslims constituted 7% of the population in each of 1848 and 1868. The vast majority of Egypt’s non-Muslims were Coptic Christians (94%), followed by non-Coptic Christians such as Levantines, Greeks and Armenians (4%), and Jews, both Rabbinic and Karaite (2%).

The population share of non-Muslims in the 1848 and 1868 samples is consistent with the subsequent village-level population censuses between 1897 and 1996 and the individual-level population census samples from 1986, 1996 and 2006, albeit with important fluctuations over time.

Notably, there was a temporary surge in non-Muslims’ population share between 1868 and 1947, which was likely to have been due to the influx of Levantine Christians, Armenian, Greek and European immigrants into Egypt, followed by a steady yet slow decline in the second half of the 20th century.

Perhaps more importantly, non-Muslims in 1848 and 1868 were more likely than Muslims to work in white-collar occupations and had higher school enrolment rates. But there were significant occupational differences among non-Muslims: non-Coptic Christians had the highest share of white-collar workers, followed by Jews and Coptic Christians. And whereas non-Coptic Christians and Jews were over-represented in commerce and finance, Copts excelled in state fiscal bureaucracy and artisanship.

In Saleh (2016), I follow the inter-religious socio-economic gap in the subsequent population censuses during the period from 1897 to 2006, and the individual-level population census samples in 1986, 1996 and 2006 – see Figure I.

The censuses reveal that the gap persisted through the mid-20th century, but it fell towards the end of the century. The reasons for the persistence and the decline of the gap arguably have to do with the growth of European ‘modern’ schools, in which non-Muslim students were over-represented through the 1940s, and the following expansion of public mass primary education between 1951 and 1953, which improved Muslims’ lot vis-à-vis Christians.

The policy of guaranteed employment in the public sector for secondary schools and university graduates that lasted from 1961 until 1983 played a role in occupational convergence. But the occupational gap, measured by the proportion of white-collar workers, did not disappear, probably because of the abolition of the guaranteed employment scheme.

Examining the educational gap in more depth shows that there are persistent important inter-religious differences in specialisation among university students, where Christians are more likely to select into medicine, pharmaceutics and engineering. Muslims on the other hand have traditionally monopolised the high state bureaucracy positions, as well as the judiciary, the military and the police.

Understanding the facts about inter-religious inequality in both the pre-colonial and colonial periods and how it was altered by postcolonial public policies is of utmost importance if we are to have an informed public debate on the topic in the future.

 

Figure I. Educational and occupational attainment by religion and cohort of birth

 

Further reading

Saleh, M (2016) ‘Public Mass Modern Education, Religion, and Human Capital in Twentieth-Century Egypt’, Journal of Economic History 76(3): 697-735.

Saleh, M (2015) ‘The Reluctant Transformation: State Industrialization, Religion, and Human Capital in Nineteenth-Century Egypt’, Journal of Economic History 75(1): 65-94.

Saleh, M (2013) ‘A Pre-Colonial Population Brought to Light: Digitization of the Nineteenth-Century Egyptian Censuses’, Historical Methods: A Journal of Quantitative and Interdisciplinary History 46(1): 5-18.

Most read

Global value chains and sustainable development

What is the role of exchange rate undervaluation in promoting participation in global value chains by firms in developing countries? What is the impact of the stringency of national environmental regulations on firms’ GVC participation? And how do firms’ political connections affect their participation in GVCs? These questions will be explored for the MENA region at a special session of the ERF annual conference, which takes place in Cairo in April 2025.

Adoption of decentralised solar energy: lessons from Palestinian households

The experience of Palestinian households offers a compelling case study of behavioural adaptation to energy poverty via solar water heater adoption. This column highlights the key barriers to solar energy adoption in terms of both the socio-economic status and dwellings of potential users. Policy-makers need to address these barriers to ensure a just and equitable transition, particularly for households in conflict-affected areas across the MENA region.

Migration, human capital and labour markets in MENA

Migration is a longstanding and integral part of the MENA region’s economic and social fabric, with profound implications for labour markets and human capital development. To harness the potential of migration for promoting economic and social development, policy-makers must aim to deliver mutual benefits for origin countries, host countries and migrants. Such a triple-win strategy requires better data, investment in return migration, skill partnerships, reduced remittance costs and sustained support for host countries.

Shifting gears: how the private sector can be an engine of growth in MENA

Businesses are a key source of productivity growth, innovation and jobs. But in the Middle East and North Africa, the private sector is not dynamic and the region has a long history of low growth. This column summarises a new report explaining how a brighter future for MENA’s private sector is within reach if governments rethink their role and firms harness talent effectively.

Building net-zero futures: Asian lessons for MENA’s construction sector

Three big economies in Asia are achieving carbon neutrality in construction. This column draws lessons from Japan, Taiwan and Thailand – and explains why, given the vast solar potential and growing focus on environmental, social and governance matters in the Middle East and North Africa, governments in the region must adopt similarly ambitious policies and partnerships.

Losing the key to joy: how oil rents undermine patience and economic growth

How does reliance on oil revenues shape economic behaviour worldwide? This column reports new research showing that oil rents weaken governance, eroding patience – a key driver of economic growth and, according to the 13th century Persian poet Rumi, ‘the key to joy’. Policy measures to counter the damage include enhancing transparency in oil revenue management, strengthening independent oversight institutions and ensuring that sovereign wealth funds have robust rules of governance.