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Factors Influencing Poverty in Iran Using a Multilevel Approach

Author

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  • Salem , Ali Asghar

    (Allameh Tabataba'i University)

  • Bayat , Neda

    (Qazvin Islamic Azad University)

Abstract

This study aims at investigating the factors effective on poverty as one of the notable socioeconomic problems in Iran. To overcome the limitations of the prior research, the present study makes use of a multilevel model so as to simultaneously analyze the individual-level (personal characteristics) and macro-level (economic and institutional characteristics) factors. The provincial household budget data are obtained from Statistical Center of Iran and regional-national accounts of 2014 are used to explore the individual and institutional factors that might influence the poverty status of a family. Comparing the individual and institutional effects within the analytical process revealed that the model can empirically make it clear which of the two levels has the highest effects on poverty likelihoods in poor families. The study results indicate that none of the institutional and macro-level variables affects the poverty occurrence or eradication likelihoods and, in the meantime, the majority of the individual level variables, including the number of family members, employment status, age and education level of the family head are found strongly and significantly associated with poverty occurrence likelihood in a household.

Suggested Citation

  • Salem , Ali Asghar & Bayat , Neda, 2018. "Factors Influencing Poverty in Iran Using a Multilevel Approach," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 13(1), pages 81-106, January.
    • Handle: RePEc:mbr:jmonec:v:13:y:2018:i:1:p:81-106
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    More about this item

    Keywords

    Determinants of Poverty; Multilevel Model; Individual Level Factors; Macro-Level Factors; Institutional Level Factors;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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