Investigation of Simultaneous Effect of Some Factors on Poverty and Income of the Household and the Head of Household's Economic Activity Status

In many cross-sectional studies, effective factors on poverty and income, as variables that are recorded by ordinal scale, using, respectively, expenditure and income deciles, are investigated. Many economical researches are also performed to find the effective factors on economical activity status of the head of household as a variable measured on a nominal scale. However, as these three above-mentioned variables are endogenous, the effect of effective factors on these three variables must be investigated simultaneously. Then, in this paper, to analyze these mixed ordinal and nominal responses, a random coefficient multivariate mixed nominal and ordinal model is suggested that one, using Bayesian methods, can obtain its parameters estimates. This model is used to analyze household income and expenditure survey data. Results show that the correlations of the three endogenous variables of poverty status, income of the household and economical activity status of the head of household are completely different and strongly significant. Also, the odds of lower levels of poverty and lower levels of income deciles are decreasing with increasing of age, and education level of the head of household and increasing of the number of employed people in the household.