Assessment of Urban Multidimensional Poverty and Its Effects on Livelihoods: The Case of Selected Woredas of Bole Sub City, Addis Ababa.

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Date

2023-06

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Addis Ababa University

Abstract

Poverty is a state or condition in which one lacks the financial resources and essentials for a certain standard of living. Poverty can have diverse social, economic, and political causes and effects. Assessing the multidimensional urban poverty and its effect on livelihood is vital in order to tackle the problem and suggest solutions. This study was designed to assess the Urban Multidimensional Poverty and its Effects on Livelihoods: The Case of selected Woredas of Bole sub city. A total of 296 household heads and 5 officers participated in the research and both descriptive and Econometrics analysis were employed in the data analysis. The determinants of multidimensional poverty are investigated using a logistic regression model. Alkire and Foster method of Multidimensional poverty measurement method were employed to assess the severity and deprivation status of the respondents. Thematic analysis was also employed to analyze the qualitative and the quantitative data of the study. It is analyzed by descriptive statistics and econometric technique. According to the descriptive analysis, 62 (20.94 percent) of the households in the sample were multidimensional poor. Hence, the severity level of poverty is around 23%.The results of logistic regression revealed that being female household, being employed household head, and being obtained loan are statistically significant determinants of households for being multidimensional poor. The study identified effects of multidimensional poverty on livelihoods and recommends that poverty alleviation requires coordinated commitment from the government, NGOs and CBOs, researches, the poor themselves, and other stakeholders. Moreover, livelihood diversifications should be given emphasis in all poverty reduction strategies and policies of the city.

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Keywords

Alkire and Foster method, Logistic Regression Model, Multidimensional Poverty, Urban poverty

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