Poverty Analysis of Children in Child Headed Households in Addis Ababa

Abstract

This study attempts to analyse the economic and social situation of children living in child‐headed households using a poverty analysis framework. The study used family of indexes developed by Foster, Greer and Thorbecke (1984) commonly known as FGT measures to measure aggregate poverty and micro‐econometric method to uncover the various determinants of poverty status of children in child‐headed households. Quantitative method (Household survey) was used to generate information. From the descriptive statistics we found out that the average monthly per capita income is about half of the poverty line and the average level of consumption is also by far below the poverty line. We found out that about 77.3% of the total CHHs are below the absolute poverty line. This figure is far below from the national urban average poverty level, reflecting the miserable living standard of CHHs. The difference in level of income and consumption between male‐headed and female‐headed households is very high. Close to 90% of female CHHs are living below the poverty line while the percentage for male CHHs is 59%. Gender differential is obvious in CHHs, indicating that female child headship leads to low level of welfare.
From the regression result we found out that sex, size of household and age are determinants of child poverty. Male CHHs are less exposed to poverty compared to females. Household size increases the probability of falling into poverty, while its square reduced the probability of falling into poverty indicating the presence of economies of scale at the household level. The age of the head shows that the risk of poverty increases as age increases but at a decreasing rate as indicated by the coefficient on its squared variable. Likewise, increase in mean household age statistically is likely to worsen poverty.