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МОНГОЛЫН ХҮН АМЫН СЭТГҮҮЛ Дугаар (367) 20, 2011

82

Here we assume that

then the model becomes Ordered Logit Model.

Here,

The explanations of the chosen variables are shown in Table 1.

Table 1:

Variable description

Latent variable/dependent variable

Independent variables

age

age of the head of family, in years

sex

sex of the head of family, 0 if female, 1 if male

educ1

= 1 if education level is secondary, 0 otherwise

educ2

= 1 if education level is primary, 0 otherwise

educ3

= 1 if education level is college/graduated, 0 otherwise

educ4

= 1 if education level is vocational, 0 otherwise

totper

number of person in household

mig_percent

percentage of migrants in household, %

work

=1 if he/she works, 0 otherwise

work_percent

percentage of working persons in household, %

childnum

number of children in household

totrev

total revenue of household per year, thousand tugrugs

food

percentage of food expenses in total expenditure per year, %

Multinominal Logit Model

We can capture the effects of the chosen explanatory variables by estimating two binary logit

models,

were,

-chosen factors,

and

are the odds ratio,

The models were estimated by STATA package.

Data source of the study

The data source is from the “Urban Poverty and in-Migration” survey (2004), which cover

6847 residents in 1500 households in Ulaanbaatar, capital city of Mongolia. This Survey was