Application of Tobit Model in Identifying Causes of Poverty in Urban Slum
Although rural areas were typically thought of as regions of poverty, however, with rapid shift from rural to urban life, poverty is migrating to urban areas. An empirical study was conducted in the slum of Agege, Lagos, Nigeria in order to identify perceived causes and estimate the determinants of poverty in the slum. Simple random sampling procedure was employed to select a total of sixty (60) slum dwellers for the study. With the aid of questionnaire, primary data were obtained from slum residents. Data were analysed using tables, charts and Tobit regression model. Results of analysis showed the dominance (53 percent) of men in the slum. Results also revealed that majority of slum dwellers (70 percent) were within economically active age. Findings revealed a varied perception of causes of poverty among the slum dwellers to include lack of money, material possession, basic amenities, joblessness, violence, inability to earn a living and low living standard. Findings further showed that as slum dwellers advanced in age, more employment opportunities and income sources were created with lower poverty levels. Results further showed that a room increase per person, reduced the likelihood of poverty in the slum. Also, increase in family size and walking time to the nearest health facility raised the likelihood of being poor by 43.13 and 6.85 percent respectively. Result of analysis also revealed that the educational level of slum dwellers was inversely related to poverty as more educated slum dwellers were less prone to be poor. Increasing educational and training opportunities for residents, reforming existing housing policy and integrating slum residents in urban planning and development are suitable and sustainable policy options that should be pursued in order to reduce poverty among slum residents.
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