Determinants of Urban Household Poverty in Addis Ababa
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Date
2008-07
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Addis Ababa University
Abstract
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.
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Keywords
Determinants of Urban Household Poverty