Income Differences among the Agricultural household; A Case of Tehsil Arifwala District Pakpattan, Pakistan

Abstract

This study utilizes a detailed household survey dataset to analyze the determinants of income and poverty in Tehsil Arifwala, Punjab, Pakistan. The research identifies significant factors influencing poverty levels by examining key socioeconomic variables. The findings reveal that variables such as education, employment opportunities, access to infrastructure, and agricultural productivity have adverse and statistically significant effects on poverty, suggesting that improvements in these areas contribute to poverty reduction. Conversely, inflation is found to have a positive and significant impact on poverty, indicating that rising prices exacerbate economic hardship for vulnerable households. The study underscores the critical role of the agricultural sector in poverty alleviation, given that a large proportion of the population in Arifwala relies on farming for livelihood. Enhancing agricultural productivity through better access to credit, modern farming techniques, and market linkages could significantly reduce poverty levels. The policy implications of this research emphasize the need for targeted interventions to stabilize prices, boost agricultural output, and strengthen human capital development. The study contributes to the existing literature by providing empirical evidence on the factors driving poverty in a developing economy, offering actionable insights for poverty reduction strategies.