The Determinants of Poverty in Informal Settlement Areas of Mashhad (Case Study: Shahid Ghorbani Quarter)


Iranian Academic Center for Education, Culture and Research, Khorasan Razavi, Iran



rban poverty has long been a concern of urban and development debates, and has been an important focus in social science research. Informal settlement in Mashhad city is highlighted because of its wide spreading and severity. This study aimed to determine the causes of urban poverty in informal settlement regions. The data were collected from household level questionnaire in 2016 and the Logistic Regression Model was performed to identify the determinants of urban poverty. The data were obtained from 220 households who settled in Shahid Ghorbani quarter using the questionnaire through the Systematic Random technique. Nearly 87% of households of the studied area were below absolute poverty line and 20% of them were below extreme poverty line. Given that all household heads in the sample were married men, significant relationships were observed between poverty and characteristics like “age of household head”, “being self-employed”, “household size”, “the ratio of worker in household”, “ownership of house” and “having social security”, while factors like “Access to services and infrastructures” and “education” had no significant impact on the likelihood of moving out of poverty. The results also revealed that if the household head is older and self–employed, the likelihood of being poor is gradually diminished. Also if the family members had some kind of social security or owned their houses, household welfare would improve; however, increasing in household size and ratio of worker in household would decrease household welfare. Eventually, the marginal effects of variables were interpreted.


Asian Development Bank. (2001). Participatory Poverty Assessment in Cambodia. Retrieved from
Azeem, M. M., Mugera, A. W., & Schilizzi, S. (2016). Poverty and Vulnerability in the Punjab, Pakistan: A Multilevel Analysis. Journal of Asian Economics, 44, 57-72.
Babu, C. B., Gajanan, S. N., & Sanyal, P. (2014). Measurement and Determinants of Poverty -Application of Logistic Regression Models. Food Security, Poverty and Nutrition Policy Analysis (361-415). London, UK: Elsevier Publication.
Barati, J., Soltani, S., Foroogh-Zadeh, S., & Razaghian, F. (2017). The Role of Human Capital Factors on Poverty in Informal Settlement: Informal Settlement of Sheikh-Hasan, Mashhad City, Iran. Journal of Sustainable Development, 10(4), 21-30.
Ben-Shalom, Y., Moffitt, R. A., & Scholz, J. K. (2011). An Assessment of the Effectiveness of Anti-poverty Programs in the United States. The Johns Hopkins University, NBER Working Pape, Retrieved from
Benson, T., Chamberlin, J., & Rhinehart, I. (2005). An Investigation of the Spatial Determinants of the Local Prevalence of Poverty in Rural Malawi. Food Policy, 30(5–6), 532–550.
Chen, K. M., & Wang, T. M. (2015). Determinants of Poverty Status in Taiwan: A Multilevel Approach. Social Indicators Research, 123(2), 371–389.
D’Ambrosio, C., Deutsch, J., & Silber, J. (2011). Multidimensional Approaches to Poverty Measurement: an Empirical Analysis of Poverty in Belgium, France, Germany, Italy and Spain, Based on the European Panel. Applied Economics, 43(8), 951–961.
Dartanto, T., & Nurkholis. (2013).The Determinants of Poverty Dynamics in Indonesia: Evidence from Panel Data. Bulletin of Indonesian Economic Studies, 49(1), 61-84.
Glewwe, P. (1991). Investigating the Determinants of Household Welfare in Côte d'Ivoire. Journal of Development Economics, 35(2), 307-337.
Hulme, D., & Shepherd, A. (2003). Conceptualizing Chronic Poverty. World Development, 31(3), 403–423.
Khudri, M. M., & Chowdhury, F. (2013). Evaluation of Socio-economic Status of Households and Identifying Key Determinants of Poverty in Bangladesh. European Journal of Social Sciences, 37(3), 377-387.
Leu, C. H. (1995). Effects of Gender and Marital Status on Household Poverty in Taiwan. Journal of Women and Gender Studies, 6, 25–54.
Ligtvoet, W., Hilderink, H., Bouwman, A., Van Puijenbroek, P., Lucas, P., & Witmer, M. (2014). Towards a World of Cities in 2050 – an Outlook on Water-related Challenges. The Hague: PBL Netherlands Environmental Assessment Agency.
Millennium Ecosystem Assessment. (2005). Millennium Ecosystem Assessment Synthesis Report. Washington, DC: Island Press
Mberu, B. (2006). Internal Migration and Household Living Conditions in Ethiopia. Demographic Research, 14(21), 509–540.
Nightingale, CH. (2012). Segregation: A Global History of Divided Cities. Chicago: University of Chicago Press.
Ravallion, M. (1998). Poverty Lines in Theory and Practice. Retrieved from
Rupasingha, A., & Goetz, S. J.  (2007). Social and Political Forces as Determinants of Poverty: A Spatial Analysis. The Journal of Socio-Economics, 36(4), 650–671.
Selim, S. (2016). Socio-Economic Determinants of Poverty in Turkey: Panel Logit Approach. International Journal of Statistics & Economics™, 17(3), 71-84.
Uchenna, B. M., Ciera, J. M., Elungata, P., & Ezeh, A. C. (2014), Patterns and Determinants of Poverty Transitions among Poor Urban Households in Nairobi, Kenya. African Development Review, 26(1), 172–185.
UN-Habitat. (2005). Responding to the Challenges of an Urbanizing World 2005. Nairobi, Kenya. Retrieved from
United Nations. (2002). World Urbanization Prospects, the 2001 Revision Data Tables and Highlights; Population Division. Retrieved from
United Nations Development Programme. (2014). Barriers and Opportunities at the Base of the Pyramid, the Role of the Private Sector in Inclusive Development. Retrieved from
World Bank. (2000). World Development Report (WDR) 2000/2001: Attacking Poverty. Retrieved from