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Poverty and vulnerability in the Punjab,Pakistan: A multilevel analysis
Affiliation:1. The UWA Institute of Agriculture and School of Agricultural & Resource Economics (SARE), Faculty of Science – The University of Western Australia (UWA), 35 Stirling Hwy, Crawley, WA 6009, Australia;2. Institute of Agricultural and Resource Economics, The University of Agriculture Faisalabad, Pakistan;3. Centre for Environmental Economics & Policy (CEEP), The University of Western Australia, Australia;1. University of Adelaide, Australia;2. The Johns Hopkins University Bologna Center, Italy;1. Zhejiang Research Institute of ZUFE-UCASS, Zhejiang University of Finance & Economics, Hangzhou, China;2. School of Statistics and Mathematics, Zhejiang Gongshang University, Hangzhou, China;3. Collaborative Innovation Center of Statistical Data Engineering, Technology & Application, Zhejiang Gongshang University, Hangzhou, China
Abstract:This study estimates the prevalence and extent of vulnerability to poverty in the Punjab province of Pakistan. A multilevel model is used to analyze survey data of about 90,000 households distributed across 150 towns/tehsils. Empirical estimates show that the vulnerability rate is higher than the rate of poverty, and poverty-induced vulnerability is higher than risk-induced vulnerability. Moreover, idiosyncratic-vulnerability is higher than covariate-vulnerability. Unlike previous studies that find poverty to be a rural phenomenon, this research shows that poverty and vulnerability are equally high in urban areas. A high level of urban vulnerability adds urgency to anti-poverty interventions given a rapid urbanization in Pakistan.
Keywords:Poverty  Vulnerability  Multilevel model  Idiosyncratic and covariate shocks  Punjab  Pakistan
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