Abstract

Poverty is daily experience of citizens in Ethiopia and the government has implemented different poverty reducing policies and strategies in the intention to reach middle income countries in the coming 7 years. This Study aimed at analyzing the determinants of urban poverty At household level in terms of demographic, economic and social practices in soddo Town. The study was conducted under cross sectional research design. The approach that was used is a mixed approach which makes the use of both quantitative and qualitative methods. Samples of 227 households were drawn from the target population by adopting systematic random sampling technique and 18 of them were discarded from further consideration due to lack of response. Data collecting instruments like questionnaire, semi-structured interview, document analysis and focus group discussions were used to collect data. .A Logistic regression model was employed and estimated based on the primary data, with the probability of a household being poor as a dependent variable and a set of demographic and socioeconomic variables as the explanatory parameters. By making use of Food Energy Intake (FEI) approach the surveyed households are identified as the poor and non-poor. Based on this, Birr 3246 was computed as food poverty line per adult equivalent per month and out of the 209 respondent household heads, 94(45%) were found to be poor. The poverty gap index of 8 percent and poverty severity index of 3 percent were estimated. The variables that are positively correlated with the probability of being poor are family size whose number of members are 5 and above, education, age, sex, saving, electricity connection, unemployment and marital status. The variables that are negatively correlated with the probability of being poor are family size whose numbers of members are less than 5, house tenure, water pipe connection, employment status. These calls for urgent interventions aimed at curbing the problems of the people through creating employment opportunities, family planning, provision of market based short term trainings, empowering females and distribution of social service, improving education services, health services, and creating access to credit facilities need to be promoted for poor urban household in the study area. Keywords: - Poverty, poverty line, poverty incidence, poverty gap, poverty severity DOI : 10.7176/JAAS/60-02 Publication date: January 31 st 2020

Highlights

  • Poverty affects large proportion of the world’s population

  • It was found that two of them: family size and educational level are significantly affect households falling into poverty at 99% confidence level

  • Household headed by relatively high level of education tend to be less poor than those household headed by low level of education status Households that have no saving habit are greater probability of falling in to poverty Households who do have no their own house, no private tape water in their compound, no access of electricity are greater probability of falling in to poverty

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Summary

Introduction

Poverty affects large proportion of the world’s population. There are many part of each country of the world including the richest in spite of their wealth where poverty is the problem. In Ethiopia poverty is the general feature for the nation and causing many sufferings and anguish to the largest proportion of the population. It is high agenda of the government, donor agencies, NGOs and other actors that have the inspiration to reduce the level and mitigate the effect and its associated impacts on the wellbeing of the people. The challenge in the struggle against poverty of the small sized towns in the country in general and in wolita soddo in particular is immense. Among the many impediments of poverty are the social, economic and demographic variables. Poverty in Ethiopia is greatly connected with the size and composition of households, the educational level of household head, the degree and extent of dependency within the household, asset ownership, the occupation of household heads, rapid population growth, major health problems, lack of infrastructure and extreme environmental degradation (MoFED, 2012)

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