Household Level Determinants Of Poverty In Ethiopia

Poverty has turned out to be a great global social and economic problem. In Ethiopia, it isrnmultifaceted and deep rooted The objective of this study was to analyze the impact of socioeconomicrnand demographic characteristics of households on poverty in Ethiopia, both in urbanrnand rural areas, using the latest Household Income, Consumption and Expenditure Surveyrn(HICES) 2010-11 data. The study used a logistic regression model to identify determinants ofrnwellbeing of the household by considering poverty status as dependent variable. Differentrnhouseholds are classified as either poor or not-poor on the basis of absolute poverty line yearlyrnper capita consumption of Birr 3781. Results showed that households that own agricultural land,rnheaded by educated person and head of the household employed (self-employed or employed inrnthe formal sector) are more likely to exit from poverty tmp. The results of the logistic regressionrnalso implied that household wellbeing is negatively affected by being headed by female, havingrnlarge household size and high dependency ratio. Moreover, the study revealed that thernprobability of being poor is higher in rural areas. Any policy or program that is geared towardsrneradicating poverty in the counlly must recognize the impact of these factors in order for it tornsucceed.

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