The Enigma of Wealth and Education as Determinant of Rural Poverty: A case study of District Rahim Yar Khan-Pakistan

Abstract

This is an empirical study of which objective is to analyze major determinants of rural poverty particularly wealth and education by using micro survey. The data used in this study is primary and collected from various villages of District Rahim Yar Khan of Southern Punjab, Pakistan. The selected variables are include:  age, family size, per capita income, marital status, gender, energy sources, fuel consumption, residence, health care facility, transportation, years of education, and wealth in terms of self as well as inherited. A sample of 300 households was collected and multivariate logistic regression approach was applied to estimate the parameters and enigma of wealth and education as determinant of rural poverty. To pursue the national or international poverty line Rs. 6000/- per month of each member of household is used as yardstick as per World Bank criteria mentioned in its Report 2014. The regression results show that almost all variables exists inverse relationship that means minor change in wealth and education will cause variation in rural poverty. Our empirical results shows that chance of household poverty increases due to increase of household size. Similarly, increase in primary as well as technical education will lead to decrease the level of poverty. The evidence also reveals that increase in personal wealth of rural households will also lead to decrease poverty rate but the person will remain poor in term of education. The evidence shows that proper use of wealth and dissemination education will substantially reduce poverty in the poor countries if the results of this study are generalized.

Keywords: Determinants, Rural Poverty, Wealth, Education, Household, Rahim Yar Khan, Punjab.