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The Determinants of Household Poverty and Expenditure Inequality in Pakistan: Evidence from the Household Income and Expenditure Survey

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  • Afsah Khalid

  • Dr. Qaiser Munir

    (School of Economics and Social Sciences, IBA Karachi)

Abstract

The following study attempts to demonstrate poverty determinants and calculate expenditure inequalities. Secondary household level cross-sectional data is used from the PSLM/HIES 2018-2019 survey. Logit and quantile regressions have been run. Logit regression has been used to find the probability of being poor in relation to certain characteristics of both households and household heads. Quantile regression has been utilized to find regression lines at each quantile and possible significance. To measure inequalities in the country among provincial, regional and gender groups, Gini coefficients, Generalized Entropy Indices, Atkinson Indices and the Foster-Greere Thorbeck measures have all been used. The results indicate that female-headed households in rural areas of Punjab are most likely to face inequalities in consumption distributions. The highest impacting determinants from the regression results are the size of the household, rural regions, access to facilities like internet, garbage collection, toilets, drainage, hand-washing agents and an adequate source of water. The number of rooms in the house were found to be significant as well. These findings indicate that policies to reduce poverty and inequality should be focused in Pakistan. There is a need for integrated policy making.

Suggested Citation

  • Afsah Khalid & Dr. Qaiser Munir, 2024. "The Determinants of Household Poverty and Expenditure Inequality in Pakistan: Evidence from the Household Income and Expenditure Survey," Social Inequality Lab Working Paper Series wpsil5, School of Economics and Social Sciences, IBA Karachi.
    • Handle: RePEc:aho:ibaess:wpsil5
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    File URL: https://www.iba.edu.pk/sess/labs/sil/pdf/wp-sil-05.pdf
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