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The Socioeconomic Determinants of Urban Poverty in Saudi Arabia

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  • Al Lily, Miriam
  • Waibel, Hermann

Abstract

This paper presents results from one of the first independent socioeconomic household surveys to study urban poverty among Saudi nationals. This survey was administered to 496 Saudi households in Dammam in 2019. Poverty is conceptualised as relative poverty, which is based on the country’s inflation adjusted national poverty line of $6 per person per day. The methodology is based on the Foster-Greer-Thorbecke (FGT) poverty index, which is used to analyse the socioeconomic determinants of the prevalence, intensity, and severity of poverty. The results indicate that education and unemployment are crucial determinants of poverty outcomes. In addition, large family sizes combined with the tradition of having a single breadwinner also pushes households into poverty. Female-headed households are particularly vulnerable. Furthermore, social capital positively impacts the welfare of households, whereas being of African descent has a negative influence. However, health, personal attitudes, and being of Bedouin origin are not significant variables in the model. The social welfare system is able to mitigate some of the disadvantages, but not all. Overall, approximately one third of poor households are being lifted out of poverty by social welfare payments.

Suggested Citation

  • Al Lily, Miriam & Waibel, Hermann, 2021. "The Socioeconomic Determinants of Urban Poverty in Saudi Arabia," Hannover Economic Papers (HEP) dp-691, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-691
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    References listed on IDEAS

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    1. Dare Akerele & Siaka Momoh & Samuel A. Adewuyi & Biola B. Phillip & Olumuyiwa F. Ashaolu, 2012. "Socioeconomic determinants of poverty among urban households in South‐West Nigeria," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(3), pages 168-181, February.
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    More about this item

    Keywords

    Arab World; Social Exclusion; Urban Poverty; Poverty Determinants; Poverty Gap;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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