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Poverty and Household Socioeconomic Characteristics in Botswana: An Econometric Approach

B D Mmolawa and S M Kapunda

The Icfai Journal of Applied Economics, 2007, vol. VI, issue 2, pages 7-16

Abstract: This paper analyzes the socioeconomic characteristics of households in Botswana and studies econometrically the relationship between income poverty and socioeconomic variables—gender, age, educational status, employment of the household head, number of dependants the household has, health status of the household head, and the asset holding of the household. The study uses both, descriptive and multiple regression analysis, employing the logit model to assess the impact of the chosen variables. Econometrically, all variables selected have a significant impact on the level of poverty and have the expected signs. The results show that households having female heads are more in poverty and have other characteristics that aggravate poverty—less education, large households and more dependents—are more vulnerable to unemployment and have fewer assets. Finally, appropriate recommendations are provided.

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Handle: RePEc:icf:icfjae:v:06:y:2007:i:2:p:7-16