Development

Determinants of Urban Poverty: The Case of Medium Sized City in Pakistan

January 1, 2010

Masood Sarwar Awan

Nasir Iqbal

Pakistan Institute of Development Economics

Abstract

Urban poverty, which is distinct from rural poverty due to demographic, economic and political aspects remain hitherto unexplored, at the city level in Pakistan. We have examined the determinants of urban poverty in Sargodha, a medium-size city of Pakistan. The analysis is based on the survey of 330 households. Results suggest that employment in public sector, investment in human capital and access to public amenities reduce poverty while employment in informal sector, greater household size and female dominated households increase poverty. We recommend greater investment in human capital and public amenities as a strategy for poverty alleviation.

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