characteristics discussed earlier enter the regression as explanatory right-hand side variables. We also added a variable measuring the number of mature cattle refugee households own and a dummy capturing if households borrowed or paid back money or borrowed goods. Finally, we also added the dependency ratio to proxy a household’s capability to work. These variables are expected to affect the capacity of refugees to earn income. Finally, we controlled for the region of residence, household size, age, sex, and literacy of the head of the household. Variables with a positive sign are associated with reducing the gap between consumption and the poverty line (lower costs of basic needs), while variables with a negative sign are associated with widening the gap between consumption and the poverty line.

|Table 1. Results from OLS regression explaining difference in log ratio of pre-assistance consumption to int<br>line byrefugee household characteristics(positive coefficient means reduction ofpoverty gap)|ernational poverty|
|---|---|
|**Variables**|**Coefficient**|
|Head of household working (base=not working)|0.265***|
|**_Household owns at least one plot of land_**||
|Household does not have land or have use rights on land|-0.168*|
|**_Household does not have land_**||
|Household owns less than 0.05 hectare per capita|-0.116|
|Household owns more than 0.05 hectare per capita|0.263**|
|**_Household lives in Uganda one year or less_**||
|Household lives in Uganda 2 years|-0.0762|
|Household lives in Uganda longer than 3 years|0.410***|
|Household child/children have Ugandan friend|0.233***|
|**_One member household_**||
|Two household members|-0.533**|
|Three household members|-0.537**|
|Four and above household members|-0.760***|
|Dependency ratio (children and elderly over total household size)|-0.712***|
|Head of household is literate|0.05|
|Number of cattle owned|0.0195***|
|Any member borrowed money or goods or paying back|0.289***|
|**_West Nile_**||
|Kampala|1.806***|
|Southwest|0.259***|
|Head of household age|-0.00533*|
|Male head of household|-0.00418|
|Constant|-0.129|
|Observations|691|
|R-squared|0.578|
|Source: RHCS 2018, WB staff calculations.||
|Note: *** significant at 1 percent, ** at 5 percent, * at 1 percent. Regression is run for refugee sample only using<br>population weight.||

Consistent with the earlier descriptive analysis, there are several household characteristics which are significantly correlated with the consumption to poverty line ratio. Thus, having an employed household head helps to reduce the gap between household consumption and the poverty line. Having at least 0.05 hectare of land per household member and owning at least one plot helps to reduce the gap. Social integration proxied by refugee children having Ugandan friends also reduces the ratio between pre-assistance consumption to international poverty. Given that integration takes time, staying in Uganda three or more years reduces the poverty gap compared to staying in Uganda only one to two years. Ownership of large cattle and the ability to borrow are also found to be associated with a lower poverty gap. The gender of the head of household does not affect the size of the poverty gap controlling for other characteristics of refugees and their location. Households with larger shares of children or with more elderly tend to have a higher gap, presumably because of a lower capacity to work.

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