Analysis of Livelihood Strategy Determinates Among Different Wealth Categories of Rural Households: A Case from Amhara Region of Ethiopia

Abstract

This study was conducted to determine factors affecting choices of household livelihood strategies among the different wealth categories. Multistage sampling which includes both purposive and random sampling was used to select 120 sample respondents. The Primary data were collected from randomly selected households based on probability proportional to size. Descriptive statistics, inferential statistics and an econometric model (Multinomial logistic regression) were used to analyze the data.  The study identified that agriculture alone and agriculture plus migration livelihood strategies are the two most pertinent livelihood strategies in the study area.  The multinomial logit model explores that out of the 15 explanatory variable: Agriculture alone livelihood strategy was determined by education level, credit access and receiving remittance, Agriculture plus nonfarm was affected by credit access, distance from market center and land holding and  Agriculture plus off farm was influenced by sex of household head,  credit access and remittance. The study suggested that Policy-makers need to work to promote livelihood diversification to minimize resource poor HH vulnerability.

Keywords: Livelihoods, wealth category, Livelihood strategies, Diversification, migration