Livelihood Diversification and Multidimensional Child Poverty: Insight from Negele, Oromia Region, Ethiopia

Abstract

The objective of this study is to examine the relationship between household livelihood diversification and child poverty. Using a multistage sampling method, 401 respondents were selected from four kebeles based on probability proportional to size. Data were collected from the sample households through enumerator-administered interview schedules and analyzed using descriptive statistics and probit model. A multidimensional approach was employed to analyze child poverty, considering indicators such as nutrition, health, education, water, sanitation, housing conditions, information, and fuel and energy. Descriptive analysis revealed that approximately 85% of children in the study area are multidimensionally poor. Additionally, significant differences in child poverty were observed across different child age and sex categories, the sex of household heads, and household socioeconomic status. The Simpson diversity index was used to measure the extent of livelihood diversification. Results indicated that nearly 56% of households have highly diversified livelihoods, while 25% have moderately diversified livelihoods. The study found that most livelihood diversification activities have a positive and significant effect on reducing child poverty. The findings suggest that interventions tailored to the child's age and sex, as well as the sex and socioeconomic status of the household, are necessary to effectively address child poverty in the study area.