Analysis of the Extent of Households’ Multidimensional Poverty: The Case of Nekemte City, Oromia, Ethiopia

Abstract

The objective of the study was to examine the extent of households’ multidimensional poverty in Nekemte City. To achieve this objective, the study used both primary and secondary data. The primary data was collected from 379 sample household heads of Nekemte City through interview and questionnaire. It was based on cross sectional data collected during 2020/21. Alkire-Foster multidimensional poverty measurement: counting approach was employed to analyze the extent of multidimensional poverty in the study area. The result revealed that 20.6% of the population is under multidimensional poverty with average intensity and MPI of 41.5% and 8.55% respectively. Living standard dimension was the highest contributor to MPI followed by education dimension. Based on the findings, the study suggests improving economic activities, promoting access to education and improving saving habit. Moreover, improved targeting devices can be useful instruments in reducing poverty, in particular to reach those in severe poverty.

Keywords: Multidimensional, poverty, Nekemte, city, Ethiopia, indicators, household

DOI: 10.7176/EJBM/14-21-02

Publication date: November 30^th 2022