Determinants of Poverty in Eritrea: A Household level Analysis

This paper uses DOGEV model for modelling determinates of poverty in Eritrea by employing Eritrean Household Income and Expenditure Survey 1996/97 data. Education impacts welfare differently across poverty categories and there are pockets of poverty in the educated population sub group. Effect of household size is not the same across poverty categories. Contrary to the evidence in the literature the relationship between age and probability of being poor was found to be convex to the origin. Regional unemployment was found to be positively associated with poverty. Remittances, house ownership and access to sewage and sanitation facilities were found to be highly negatively related to poverty. This paper also finds out that there is captivity in poverty category and a significant correlation between poverty orderings which renders usage of standard multinomial/ordered logit in poverty analysis less defensible