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Determinants of Poverty in Eritrea: A Household level Analysis

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  • Eyob Fissuh & Mark Harris

Abstract

This paper uses DOGEV model for modelling determinates of poverty in Eritrea by employing Eritrean Household Income and Expenditure Survey 1996/97 data. Education impacts welfare differently across poverty categories and there are pockets of poverty in the educated population sub group. Effect of household size is not the same across poverty categories. Contrary to the evidence in the literature the relationship between age and probability of being poor was found to be convex to the origin. Regional unemployment was found to be positively associated with poverty. Remittances, house ownership and access to sewage and sanitation facilities were found to be highly negatively related to poverty. This paper also finds out that there is captivity in poverty category and a significant correlation between poverty orderings which renders usage of standard multinomial/ordered logit in poverty analysis less defensible

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 364.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:ausm04:364

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Keywords: Poverty; Eritrea; Dogev; Dogit and Ogev;

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  1. Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
  2. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling low income transitions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
  3. Geda, A. & de Jong, N. & Mwabu, G. & Kimenyi, M.S., 2001. "Determinants of poverty in Kenya : a household level analysis," ISS Working Papers - General Series 19095, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  4. Marc J. I. Gaudry, 1980. "Dogit and Logit Models of Travel Mode Choice in Montreal," Canadian Journal of Economics, Canadian Economics Association, vol. 13(2), pages 268-79, May.
  5. Amuedo-Dorantes, Catalina, 2004. "Determinants and Poverty Implications of Informal Sector Work in Chile," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 347-68, January.
  6. Tim R.L. Fry & Mark N. Harris, 2002. "The DOGEV Model," Monash Econometrics and Business Statistics Working Papers 7/02, Monash University, Department of Econometrics and Business Statistics.
  7. Barrientos, Armando & Gorman, Mark & Heslop, Amanda, 2003. "Old Age Poverty in Developing Countries: Contributions and Dependence in Later Life," World Development, Elsevier, vol. 31(3), pages 555-570, March.
  8. Diamond, Charles A. & Simon, Curtis J. & Warner, John T., 1990. "A multinomial probability model of size income distribution," Journal of Econometrics, Elsevier, vol. 43(1-2), pages 43-61.
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Cited by:
  1. Paul Makdissi & Dorothée Boccanfuso & Mathieu Audet, 2006. "The Geographic Determinants of Poverty in Albania," Cahiers de recherche 06-12, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  2. Bluffstone, Randall & Yesuf, Mahmud & Bushie, Bilisuma & Damite, Demessie, 2008. "Rural Livelihoods, Poverty, and the Millennium Development Goals: Evidence from Ethiopian Survey Data," Discussion Papers dp-08-07-efd, Resources For the Future.

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