Determinant of Urban Multidimensional Poverty: a Household Level Analysis in the Case of Kolfe Keraniyo Sub City of Addis Ababa City

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Addis Ababa University


Poverty is a problem in all countries, but it is particularly acute in Sub-Saharan Africa. Ethiopia is working to eradicate poverty in all of its forms as part of the nation's 2030 fundamental goals. As a result, it is vital to measure urban poverty in order to advance the effort. As a result, the study's goal was to look into the factors that contribute to urban poverty at the household level in Addis Ababa in the case of Kolfe Keranio sub city. The data for the study were taken from 398 sampled households residing in Kolfe Keranio. Both descriptive and Econometrics analysis are employed in the data analysis. The determinants of being multidimensionally poor are investigated using a logistic regression model. According to the descriptive analysis, 65.32 percent of the households in the sample are multidimensionally poor. The intensity of poverty is 89.0% and the adjusted headcount ratio is found to be 64.57%. The living standard component (34.6%) contributes the most to the overall multidimensional poverty of the sample households, followed by the education (15.4%) and health dimensions (3.0 percent). Asset indicators (63.8 percent) and cooking fuel (59.0 percent) had the biggest relative contributions to the total multidimensional poverty index of the study region among the ten multidimensional poverty index variables. In addition, the results of logistic regression revealed that the being male household, being married household head, being employed house head and being obtained loan are statistically significant determinants of households being multidimensionally poor. Policy implications that prioritize living standards and education, as well as policy implications that take key elements into account in poverty reduction initiatives, are essential.



Multidimensional Poverty, Logistic Regression Model, Urban poverty