Abstract
Purpose This study aims to explore the reasons for the existence of relative poverty in Karachi, a metropolitan city in Pakistan. Methodology A self-administered survey was conducted on 375 households in eight, major slum areas in Karachi (Orangi Town, Manghopir, New Karachi, Surjani Town, Bangali Para Gulshan, Lyari, Malir, and Korangi). Logistic regression was used for the data analysis. Findings The results confirm that secondary education for males, the uneducated males, the bread-winning members, and children having no education significantly impacts the dependent variable, i.e., total family income. Whereas, tertiary education of children, secondary education of children, tertiary education of male households, and house possession have no impact on total family income. The result of Andrews and Hosmer-Leme confirms that the model is a good fit. Conclusion The study concludes that the basic cause of relative poverty is unequal access to education, a highly dependent population, and low-earning members. Unequal access to housing facilities is another significant factor that needs to be assessed.
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