The aim of this study is to identify the determinants of poverty in Tunisia, both urban and rural, taking into account the distinction between them. The objective is to determine the potential factors that determine poverty and to evaluate their impact on the level of the household’s welfare. A particular interest is given to econometric methodology which is concerned with the analysis of panel data with limited dependent variable models. The nature of the available statistical information (survey data) prompted the adoption of random effects Logit and Probit models where the double dimension was applied for the observation of individuals grouped into clusters. This allows the dissociation of a uniform behavior from the specific effects of the clusters, to identify possible differences at the level of standards of living between the households of different clusters.
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