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The IUP Journal of Applied Economics :
Poverty and Household Socioeconomic Characteristics in Botswana : An Econometric Approach
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This paper analyzes the socioeconomic characteristics of households in Botswana and studies econometrically the relationship between income poverty and socioeconomic variablesgender, 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 povertyless education, large households and more dependentsare more vulnerable to unemployment and have fewer assets. Finally, appropriate recommendations are provided.

Botswana is known for its remarkable economic growth, relatively high per capita income, good governance and other socioeconomic aspects. However, it faces sizeable poverty and unemployment. According to the recent national Household, Income and Expenditure Survey (HIES 2002-03) the proportion of people living below the poverty datum line is estimated at 3% and unemployment rate is about 23%. These percentages are generally higher in rural and urban villages and among female-headed households.

 
 
 

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