Determinants of Urban Household Poverty in Addis Ababa

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Addis Ababa University


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



Determinants of Urban Household Poverty