Analysing Household Determinants of Poverty Eradication: A Microdata Analysis

Abstract

The current study is an attempt to explore the micro determinants of poverty eradication in Pakistan. The probit model has been used on the data obtained from Pakistan Standard Living Measurement Survey 2019-20. The results indicate that access to drinking water, availability of sanitation and hygiene facilities, holding an agricultural land, having livestock in possession,household size and being a native of the area reduce the predictive probability of being poor. Other variables such as cash transfers, receiving foreign remittances and being self-employed also have a positive impact on poverty eradication. Poverty Trends are analyzed using three cycles of data from 2008-08, 2015-16 and 2019-20, which further reveals an increase in absolute poverty. Government should increase spending on socioeconomic programs with special emphasize on land distribution in rural areas. Social safety nets in the form of cash transfers and foreign remittances would support the vulnerable in the event of external shocks.