Household Level Determinants of Poverty in Ethiopia

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Addis Ababa University


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



Household Level Determinants