actually received minus the opportunity cost of supplying that labor (see Boardman et al. 2006, chapter 11). To measure the wage appropriate to the type of jobs that SFD interventions are likely to help create, we used the private sector monthly wages received by those with an elementary school education or less in 2004 (Said 2007, Table A2), adjusted to the prices of 2004; in the absence of further information, we assume that the labor rent constitutes half of this total, and we also assume that the jobs created last for, on average, five years. This gives a total value per job created of LE 10,700 (in 2004). This is substantially less than the “cost of creating a job,” which Ghoneim (2006) puts at LE 40,000 in the relatively labor-intensive garment sector and MEMRI (2002) pegs at LE 50,000 in agriculture.

Some SFD programs reduce poverty. One way to put a value on this is to measure the increase in expenditure that would be required to raise a poor person, whose expenditure is at the mean level for the poor, out of poverty. The World Bank (2007) shows that the annual poverty deficit per poor person is LE 266 per year, or LE 1,333 over a period of five years, which we take to be the effective life of an SFD poverty-reducing intervention.

**<u>Table 16: Benefits per unit of output produced by SFD projects</u>**

|Impact to be valued|LE|Comments and Sources|
|---|---|---|
|Per one less illiterate|1,157|The benefit is that we save the cost of educating a child to the fifth grade. The cost<br>per fifth-grade completer was LE 911 in 1998-99 (USAID 2006, based on Zaalouk<br>2006); this was grossed up by 27% to reflect consumer price inflation between<br>1998-99 and 2004 (World Bank,_World Development Indicators_, online, accessed<br>March 7,2009).|
|Per one more job|10,700|Measures the economic rent obtained by working; assumed to be half of the wage<br>earned in private sector employment by those with an elementary school education<br>or less in 2006 (adjusted to the prices of 2004); the wage data come from Said<br>(2007).|
|Per one fewer poor|1,333|The poverty line is LE 1,423 per person per year. Using this line, a poverty rate of<br>19.6%, and data on income distribution in 2004 from PovcalNet, we fitted a<br>quadratic approximation to the Lorenz curve (see Datt 1998) and estimated the<br>average expenditure of the poor to be LE 1,175. We assume that when someone is<br>brought out of poverty, their spending rises from LE 1,175 to LE 1,423 (i.e. by LE<br>248),and maintains this improvement for fiveyears.|
|Per one less U-5 death|796,000|Boardman et al. (2006, chapter 15) conclude that a value of US$4 m ± USD$2 m,<br>in 2002 prices, is appropriate for the US; Viscusi and Aldy (2003) in their meta-<br>analysis use a value of US$6.7m (in 2000 prices). We assume that the value of a<br>statistical life in Egypt is the same multiple of GDP/capita as in the US.|
|Per LE1 saved on medicines (or water,<br>or sanitation,or health,or transport)|5|When a project saves LE 1 in spending, we assume that this lasts for five years.|
|Per person less with renal disease|75,222|The Disability-Adjusted Life Year (DALY) of nephritis is 0.091 and of nephrosis is<br>0.098, which means that one less case of renal disease saves the equivalent of<br>0.0945 of the value of a life(Mathers et al. 2001).|
|Per person less with bilharzia|4,776|The Disability-Adjusted Life Year (DALY) of a bilharzia infection is 0.006, which<br>means it is equivalent to 0.006 of the value of a life(Mathers et al. 2001).|
|Per LE1 of additional farm income, or<br>additional non-farm income|5|We assume that this effect lasts for five years.|

_Impact Evaluation: Egyptian Social Fund for Development_ _Version of June 29, 2009_ _Page 26 of 36_