NHDR Core Message # 5

 


Pakistan
 
 

PAKISTAN NATIONAL HUMAN DEVELOPMENT REPORT 2003

POVERTY, GROWTH AND GOVERNANCE
 

SECOND INCOME EARNER IN A HOUSEHOLD IS CRITICAL TO POVERTY*

 
 

The number of earners in a household is one of the major determinants of the income level and the probability of falling below the poverty line. The key factor that determines whether a poor household shifts out of poverty or moves deeper into poverty is the share of household income contributed by the second earner. The percentage share of the second earner in household income is 13.4 for the poor category. When this share increases the household enters the category of non-poor (17.8%) and when it falls substantially (4.0%) the household becomes extremely poor.

The share of household income contributed by the second earner is an important factor in the household’s shifting out of poverty or being pushed into deeper poverty. Therefore it may be pertinent to point out that an important determinant of the income share contributed by the second earner is the education level of the second earner. Only 1% of the second earners in the extremely poor category are matriculates while 4.4% of second earners are matriculates in the poor category. The percentage doubles to 8.7% in the case of non-poor households.


 

Text Box: PERCENTAGE OF SECOND EARNERS WITHIN EACH ECONOMIC CATEGORY BY EDUCATION LEVEL
ECONOMIC STATUS
NO EDUCATION (PERCENT)
UPTO PRIMARY (PERCENT)
MIDDLE (PERCENT)
MATRIC (PERCENT)
HIGHER EDUCATION
TOTAL
Extremely Poor
81.4
13.4
1
1
3.1
100
Poor
77.5
10.9
4.7
4.4
2.5
100
Non Poor
58.9
14.4
8.7
8.7
9.1
100
 
SOURCE: NHDR/PIDE Survey 2001.

 

 

 

 

 

 

 


 

Text Box: CONTRIBUTION OF WOMEN IN TOTAL EARNED INCOME
Average of Sample
Extremely Poor
Poor
Non-Poor
Total
All Pakistan
0.04
0.05
0.04
0.05
Urban
0.01
0.03
0.07
0.02
Rural
0.06
0.06
0.04
0.06
SOURCE: NHDR/PIDE Survey 2001.

 

 





 



* NHDR 2003, Page 57-60
 

 

 

The key factor that determines whether a poor household shifts out of poverty or moves deeper into poverty is the share of household income by the second