Determinants of Households’ Multidimensional Poverty: The Case of Nekemte City, Oromia, Ethiopia

Abstract

The study aimed at analyzing determinants of households’ multidimensional poverty in Nekemte City. To achieve this objective, the study used both primary and secondary data. The primary data was collected using semi-structured questionnaire. Simple random sampling technique was followed to draw 379 sample household heads. For data analysis, both econometric and descriptive method was applied. From econometric models, binary logit regression model was employed. The logit model result indicated that household heads’ educational level, family size, dependency ratio, income, house ownership, saving habit and social capital are the major factors significantly influencing households’ multidimensional poverty in the city. Based on the findings, the study suggests improving economic activities, promoting access to education and improving saving habits. Moreover, improved targeting devices can be useful instruments in reducing multidimensional poverty, in particular to reach those in severe poverty.

Keywords: Multidimensional poverty, logit, Ethiopia

DOI: 10.7176/EJBM/14-21-01

Publication date: November 30^th 2022