Determinants of Urban Household Poverty in Arsi Zone, Oromiya, Ethiopia

Abstract

The main objective of this paper is to assess determinants of urban household poverty in urban setting with a case study from Arsi administrative Zone, Oromiya, Ethiopia. Primary data were collected from 174 households, selected randomly from four towns. Data were analyzed using descriptive statistics, one way analysis of variance and multiple linear regression model. Results show that income poverty was positively influenced by educational level, household size and business participation status of household heads. It was found that income poverty was negatively affected by age of households, marital status and economic status of parents. It was also found that income poverty was higher among divorced and widowed household heads as compared to the married groups. However, income poverty was lower for those participating in different business activities than household heads who do not participate in business activities.

Keywords: Arsi, Ethiopia, Determinants, Oromiya, Urban Household, Poverty.