Determinants Of Urban Household Poverty In Addis Ababa

It is true that urban areas are hopes of life for they are centers of income, commerce,rnwealth, education and the like. On the other hand, there are several challenges of which onernof them is urban poverty. In Ethiopia, while a number of studies have been conducted inrnrural areas, those concerning urban poverty are limited. Obviously it is important tornunderstand the nature and scale of urbani zation, the various deriving forces that affect itrnand determinants of urban poverty as linked to this process. Thus, this study assesses therndeterminants of urban household poveliy in Addis Ababa based on survey data usingrnlogi stic regression.rnBased on the cost of basic needs approach, out of the 3462 surveyed households, 14 15 ofrnthem were found to be poor, that is, the head count is 40.9%. The poverty gap and severityrnof poverty indices were found out to be, O. I 5 and 0.07, respectively. This calls for urgentrnintervention aimed at fighting poverty. Among thc variables (factors) us cd in this study,rnplace of residence, household size, income source, educational and employment status ofrnheads of households, ownership of house and ownership of tap water inside the compoundrnwere found out to be significant detenninants of the poverty status of households in AddisrnAbaba.

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