Determinants of Multidimensional Poverty: A Study of the Rural District of Madhya Pradesh

In this study, we estimate the determinants of multidimensional poverty in the rural district of Madhya Pradesh, India. The dependent variable is the multidimensional poverty index, a dummy variable based on the deprivation score of households. The probit model is utilised to analyse the model. The results of this study reveal that income, education, and occupation are significant determinants of multidimensional poverty in rural areas. We further classified the dependent variable into poverty and extreme poverty based on deprivation scores and analysed the results. We find that income, age of the household head, and education are significant determinants of extreme poverty. We also utilised OLS estimation and ordered a probit model for robustness checks in this study. These results are also at par with probit estimation. This study helps to understand the cause and dynamics of rural multidimensional poverty in Madhya Pradesh.