Analysis of the Effecting Factors on Poverty of Urban Households According to Levels of Real Estate Wealth in Iran

Document Type : Research Paper

Authors

1 Associate Professor of Economics, University of Mazandaran

2 Master of Science in Economics, University of Mazandaran

3 Master Student in Economics, University of Mazandaran

Abstract

Household poverty is one of the factors that hinder the development of societies. Poverty is not only destructive from the economic dimension but also from the social dimension has adverse effects on society. To deal with this phenomenon, it is important to identify and investigate the factors affecting it. While it is possible that depending on the level of wealth of households, the type of effect of factors and the severity of their impact on poverty is different; therefore, the purpose of this study is to analyze the impact of each factor on the probability of poverty at different levels of wealth. For this purpose, using the data of the cost and income plan of urban households in 2020 and based on the method of 66% of the average per capita household expenditure in each province, poor households were separated from non-poor. Also, households in each province were placed in one of three defined groups of wealth. The results of estimating the research model based on pseudo panel data and random effect logistic regression at three levels of wealth indicate that age, education and masculinity are in the middle category of wealth that includes the largest number of households. The head of the household has the opposite effect and the square of age, the head of the household and the size of the household have a direct effect on the probability of poverty. As the level of wealth of households increases, the intensity of the desired effect of education on the probability of household poverty decreases. The negative effect of the household dimension on the probability of poverty moving from the lower to the upper classes of wealth also diminishes. In addition, in the nonlinear relationship between age and the probability of poverty of households by moving from lower levels to higher levels of wealth, the minimum probability of poverty will appear at higher ages, respectively. Marriage of the head in the lower category, and gender and marriage of the head in the upper category of wealth have no significant effect on the probability of poverty.

Keywords

Main Subjects

References

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Quarterly Journal of Applied Theories of Economics
Volume 9, Issue 3 - Serial Number 34
December 2022
Pages 87-112

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