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Abstract

In this paper, we investigate factors affecting total household consumption and poverty in Uganda using household survey data. Our analysis indicates that household wellbeing can be improved by expanding education at all levels (primary, secondary, and university), expanding formal employment, increasing the number of microenterprises, reducing the average household size, expanding the number of schools and health facilities so that distance to these facilities is reduced, and by providing electricity, marketing outlets, credit, and telephone service in more communities. To help policymakers assess the effects of particular policies on the national poverty rate, we developed a simulation model from our regression estimates. The simulations translate the regression results into a form that policymakers can readily understand.

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