Analysis of Urban Fringe Household Vulnerability to Poverty in low Income Areas in Addis Ababa Sub City: a Case Study of Hachalu Hundasa Zone of Koye Fecha Sub City
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Date
2025-07-25
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A.A.U
Abstract
The study is aimed to examine the extent of vulnerability to poverty with the current poverty
status among urban fringe households in Addis Ababa in case of Hachalu Hundesa Zone .The
research examined the socio-demographic and economic factors contributing vulnerability to
poverty among households in low-income areas. The study used a cross-sectional survey
methodology, gathering data from 267 households. The study reveals that a significant
proportion of households, approximately 35.6 % headcount poverty, highlighting the extent of
economic vulnerability. The Feasible Generalized Least Squares estimation was adopted to
estimate the vulnerability to the poverty status of the respondents; results showed that 99.9%
were vulnerable to becoming poor in the future. It is found that key socio-demographic factors,
such as household size, gender disparities, educational status, and limited access to essential
services significant associated with household poverty. In the study area of Female-headed
households, 34.8% have low educational levels, contributing to limited employment
opportunities. This analysis underscores the importance of education and stable employment in
mitigating vulnerability. Another factor of increasing household sizes and inadequate access to
utilities like proper sanitation and electricity further impede economic mobility. In the study
Informal employment 66.6% and reliance on informal support networks highlight that many
households experience financial instability. However the government support programs, such as
skills training, are available. Food subsidies for microfinance benefit some, but their
underutilization highlights the need for improved outreach and accessibility. The study
recommends enhancing educational access, expanding employment opportunities, improving
infrastructure, raising awareness household size reduction, and designing policies to increase
household disposable income, thereby alleviating poverty and strengthening resilience.