poverty

The main goal of this paper is to analyse factors which increase the probability of becoming poor, as well as to estimate which characteristics raises the risk of becoming poor. We use a logit model, which is a flexible way to seek determinants of a phenomena. None of the poverty literature denies the role of education and employment status in becoming poor. However, we test the contribution of other explanatory variables to look at poverty from different approaches. Deprivation index will be used as measure of poverty.

This paper presents the problem of unequal distribution of income in low-income countries - according to classification of World Bank - through introducing and heavily reviewing theoretical and empirical studies. Exploring the reasons of income inequality in those countries one must assert that there are complex interactions between past and present and between the diverse political, economic and social processes, cultural values, national and external factors and institutions.