Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī (Jun 2013)
Determinants of Poverty in Iranian Urban Households in 2009: An Application of Panel Data Models with Limited Dependent Variable
Abstract
The task of determining the factors affecting poverty is the first step in combating it and making an appropriate program to alleviate it. In this study, effective factors are identified by using micro-data from Household Income-Expenditure Survey of Urban Households in 2009 and applying an econometric model. In this article, panel data models with limited dependent variable is used. It is the choice of limited dependent variable that makes this study different from other papers that have studied the problem of poverty in Iran. So, after clustering data and calculating poverty line, a panel data with logit model, which is based on socio-economic characteristics, is estimated with maximum likelihood approach. The results show that among factors affecting poverty, the ratios of number of literate members and working members to the household dimention have the most significant effect on decreasing the probability of facing poverty. On the other hand, household size has the most significant effect on increasing the probability of facing poverty. Moreover Gender of the household head has a significant effect on the probability of facing poverty. Coefficient of this variable shows that the probability of facing poverty is reduced if the household head is male compared with the situation that the head of household is female.
