Determining Factors of Living Standard in Sub-Saharan Africa: Using Alternative Measures
26 Pages Posted: 5 May 2021
Date Written: March 29, 2021
This study examines the possible determinants of living standard of individuals in Sub-Saharan Africa using the most recent three-wave pooled data from the Afrobarometer database. Exploratory factor analysis with polychoric correlation and ordered probit and ordinary least square estimation technique for pooled data are used in the inferential analysis. Three alternative measures of living standards (individuals living condition, access to basic needs and access to basic security) are employed. This study found that, despite different measures of living standards with different estimation techniques, employment, education attainment and living in formal houses have a significant positive effect on living standard of individuals in Sub-Saharan Africa. This may imply that the used alternative measures of living standard are logical and reasonable. It also ensure that whatever the estimation technique is, the fact is fact; i.e. application of different regression techniques doesn’t change the reality. The results also show that those individuals who own fixed assets including car and motor, and own radio and television, are more likely to have a better living standard compared with those who haven’t. Hence, governments in Sub-Saharan Africa should focus on their policies and their implementation, which help to enhance the living conditions of individuals, through provision of basic needs and basic security through provision of better and stable jobs, better education, and other socio-economic infrastructures.
Keywords: living conditions, access to basic needs, access to basic security, pooled data, ordered probit, Sub-Saharan Africa
JEL Classification: E02, O10, O11,
Suggested Citation: Suggested Citation