Prevalence of Poverty and Inequality in Ethiopia: Using Ethiopian Socio-Economic Survey (ESS) 2013 and 2015

Abstract

ABSTRACT The core aim of this study is to develop a poverty and income inequality profile of Ethiopia and investigate micro-level poverty-inducing factors. The study used the 2013 and 2015 socioeconomic data sets accessed from the RULIS/FAO database. The three methods used (Foster, Greer, and Thorbecke index; logit regression; and ordinary least square) confirmed that international remittance, access to electricity, education of head of the household, presence of large number of the workforce in a household, and generating more income significantly contribute to poverty reduction. Conversely, household size, owning a house, and access to social assistance significantly contribute for poverty escalation.