Determinant of persistence in chronic poverty condition: an application of Multinomial Logit Model

Abstract

ABSTRACT This paper analyzes, from a multidimensional approach as proposed by Amartya Sen in the Capabilities Approach, the determinants of chronic poverty for the city of Porto Alegre. The method used was based on a multinomial Logit model. The results were analyzed in dimensions, which are: food, health, work and income and education. Among the results, it highlights the inadequacy food, access to medical and dental services, which directly influence the probability of individuals remaining on the condition of chronic poverty. The current levels of education had negative relationship, indicating that the probability of chronic stress, while the desired level of education reduces the probability. In monetary dimension, income for individuals in situations of chronic poverty was not statistically significant, corroborating the approach studied here. Key-words Multidimensional approach; chronic poverty; multinomial Logit. Classificação JEL: I32; C25. Artigo recebido em jul. 2012 e aceito para publicação em