Determinants of Urban Poverty Among Households of Sebeta Town, Sheger City Administration, Oromia Region, Ethiopia
No Thumbnail Available
Date
2024-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Ethiopia is known as a global where all people live in chronic condition of poverty. Especially, attention has not been given for urban poverty on findings and development studies of Ethiopia. The study was conducted with general objective determinants of urban poverty among households of Sebeta town. To gather data both primary and secondary data were used. The primary data source was collected from 361 household heads by distributing pre-prepared structured questionnaire while secondary data was collected from published and non-published materials. To determine general poverty line of the study town, a Cost of Basic Needs (CBN) approach of poverty measurement was employed and household heads in the town were identified as the poor and non-poor. Based on general poverty line in the town measurement of poverty indices head count poverty, poverty gap and severity of poverty were measured. The data was analyzed and estimated by employing descriptive statistics and Logistic regression model depend on the primary data with the probability of households being poor as a dependent variable, and demographic and socioeconomic characters as the explanatory variables. Econometric results of the binary logit regression model revealed that; sex, age, family size, health condition, education level, employment status, income, remittance, saving habit, social capital, asset ownership, access to credit, house tenure and migration were found statistically significant 1%, 5% and 10% significant level. The variables that were negatively correlated with the probability of being poor were sex, age, education, remittance, saving habit, social capital, access to credit, asset ownership, and house tenure. The variables those positively correlated with the probability of being poor were family size, employment status (unemployed), health condition and migration. Hence, the recommendations suggested in this study were cost of food and non-food items should be stabilized, promoting higher education, diversifying income of households, attention should be given to reduce family size, unnecessary rural to urban migration should be controlled, efforts should be done to enhance labor absorb market through job creation by the expansion of micro and small scale enterprises, advancing infrastructures like houses, water, electricity and health service.
Keywords: Urban Poverty, Household, Cost of Basic Needs, Logit model and Sebeta, Ethiopia