Abstract
Ethiopia is known all over the world where citizens live in very chronic condition of poverty. Urban poverty has been given less attention on research and development agenda of Ethiopia and particularly, for medium towns like Muklami. The purpose of this study is to measure the magnitude and identify determinants of poverty in Muklami town. Both primary and secondary data sources were use. A cross-sectional survey 143 household heads were carried-out by a using proportional random sampling method. To calculate total poverty line, a Cost of Basic Needs (CBN) approach was utilized. In addition both simple descriptive statistics and econometrics model such as Logit model were employed to analyses the data. The result to the study shows that head count poverty, poverty gap and severity of poverty indices are 35.6%, 12.7%, and 50.8%, respectively. The variables that are positively correlated with the probability of being poor are: sex, family size, health status, and house tenure. Variables negatively correlated with the probability of being poor are: income, educational level, marital status, age, employment status, saving habit, water source, and access to credit. Based on the result of the study, the following recommendation was made. Efforts should be made to raise the real income of households through well-paying and steady job creation by the setup of micro and small scale enterprises, with the increased provision of economic and social infrastructure of houses, education, and better water sanitation services for poverty reduction. Keywords: Urban Poverty, Cost of Basic Needs, Logit model and Muklami town DOI : 10.7176/JRDM/57-01 Publication date :July 31 st 2019
Highlights
Background of the studyPoverty has been considered as the condition that is said to exist when people lack the means to satisfy their basic needs such as food, shelter and clothes
Based on estimates of international poverty lines, national population live on less than $1.25 a day), 12 countries managed to reduce poverty levels between 1990 and 2005. These declines are encouraging, they still leave a large proportion of the total population living in extreme poverty, and all 19 countries face major challenges in meeting the 2015 Millennium Development Goal target(World Bank, 2013)
Methodology of the study The study was conducted in west wollega zone, BojiChekorsa woreda of Muklami town.This town is located at distance of 57 km from the zonal town Ghimbi and about 498 km from the capital city of Ethiopia, Addis Ababa
Summary
Background of the studyPoverty has been considered as the condition that is said to exist when people lack the means to satisfy their basic needs such as food, shelter and clothes. Poverty is a pervasive reality of the world. It is a world’s greatest challenge in the 21st century. Based on estimates of international poverty lines, national population live on less than $1.25 a day), 12 countries managed to reduce poverty levels between 1990 and 2005. These declines are encouraging, they still leave a large proportion of the total population living in extreme poverty, and all 19 countries face major challenges in meeting the 2015 Millennium Development Goal target(World Bank , 2013). Based on the national poverty line of the year 1999, 44 percent of the population is absolutely poor (MoFED, 2002). World Bank (2006), for instance, reports that 23% of the population survives on less than $1.25 a day and 77.8 %live on less than $2 a day
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