The Impact of Socioeconomic and Demographic Variables on Poverty:

Abstract

Poverty is a complex phenomenon based on a network of interlocking economic, social, political, and demographic factors. An understanding of the extent, nature, and determinants of rural poverty is a precondition for effective public policy to reduce poverty in rural Pakistan. The present study attempts to analyze the impact of socioeconomic and demographic characteristics of households on poverty, using primary data collected in the village of Betti Nala in Tehsil Jatoi, district Muzaffargarh in southern Punjab. We have used two distinct approaches: (i) a poverty profile, and (ii) an econometric approach in our empirical analysis. The results show that household size, dependency on household, participation, landholdings, and number of livestock have a significant impact on poverty incidence. Our final conclusion is that efforts should be made to improve socioeconomic factors in general and demographic factors in particular to alleviate rural poverty in remote areas of Pakistan, while land should be allotted to landless households.