Female-Headed Households and Poverty in Urban Ethiopia
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Date
2003-06
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Addis Ababa University
Abstract
The study has tried to examine the extent of poverty and vulnerability of female–headed households by
way of making comparisons with their male counterparts in urban Ethiopia. It further looks through the
determinants of their welfare and poverty. It is based on the 1999/2000 Household Income, Consumption
and Expenditure Survey (HICES) and Welfare Monitoring Survey (WMS) from Central Statistical
Authority (CSA). Using the Foster, Greer and Thorbecke (FGT) poverty indices, the descriptive analysis
of poverty indices revealed that female-headed households are poorer and more vulnerable to poverty than
male-headed households. To further investigate this, micro level regression models (OLS, probit, ordered
probit and tobit models) have been estimated. And as to the results, the variable indicating gender
suggests that female headship has no significant direct impact on the welfare or poverty level of
households. Rather, other variables such as educational attainment of the head, household size (especially
higher number of children in a family), location of residence in the region, and to some extent
employment status of the head are found to be the key determinants of poverty. However, since FHHs are
more illiterate and unemployed with most of them concentrating in informal sector activities, by
implication the fact that they are female heads has an impact on the welfare or poverty status of the
households indirectly through affecting their level of education and employment status. Hence, there is an
evidence to suggest that poverty alleviation programs should use FHHs as proxy variables for targeting the
poor. With that, gender-sensitive poverty alleviation policies that enhance endowments such as those that
increase education level, employment and ability to control fertility should be the key ingredients of a
poverty reduction strategy in the region. Besides, the variable indicating region of residence suggests that
for the government to eradicate poverty anti-poverty policy should be drawn on regional basis.
Key Words: Welfare and Poverty, Vulnerability, Female-headed households, Urban Ethiopia,
FGT poverty indices, OLS, Probit, Ordered Probit and Tobit models
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Keywords
Welfare and Poverty, Vulnerability, Female-headed households, Urban Ethiopia, FGT poverty indices, Probit, OLS, Ordered Probit and Tobit models