Determinant of Poverty in Ethiopia

Abstract

Poverty has turned out to be a great global social and economic problem. In Ethiopia, it is multifaceted and deep rooted. This study attempts to analyze the impact of socioeconomic and demographic characteristics of households on poverty in Ethiopia, using the latest Household Income, Consumption and Expenditure Survey (HICES) 2010-11. The study employs a logistic regression model to identify determinants of wellbeing of the household by considering per capita consumption as a dependent variable. Different households are classified as either poor or non-poor on the basis of absolute per capita consumption of Birr 3781. Results show owner of agricultural land, head (self-employed or employed in formal sector) are more likely to exit from poverty line. The results also reveal that female headed households, large family size and high dependency ratio are adversely affected.

Keywords: Poverty, Household, Per Capita Consumption, Determinants, Logistic Regression.