Measurement and Analysis of Poverty in Rwanda

This study examines the extent of poverty in different provinces and districts in Rwanda using both consumption and income per capita. It also looks at the determinants of household poverty and focuses on four categories for studying the determinants of poverty in the country. The income-based study of poverty is based on information from the household survey and uses 14,810 observations in 2006, 2009, and 2012, while the consumption-based poverty analysis is based on 7498 observations from 2012 database. The results are found to be very sensitive to the definition of poverty line and use of income or consumption in the analysis of poverty. This study shows that older household heads and female-headed households are more likely to be poor. Also living in rural and semi-urban areas increases the probability of being poor. Asset ownership (having a garden, cash crops, banana trees) decreases the probability of being poor. The findings of this study serve as evidence for policymakers to employ poverty alleviation policies. Increasing investments in physical infrastructure, creating jobs for female-headed households, and improving educational levels of household heads should also be focused on.