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Determinants Of Household Poverty: The Case Of Gondar City In Ethiopia


Ethiopia is known all over the world for its chronic condition of poverty. As a result the Ethiopian government, multilateral agencies and other stakeholders consider poverty as their priority agenda. This study deals with the determinants of urban poverty with the objective of identifying the poverty status of households and the main factors that push them to the poverty trap. The data for the study came mainly from cross-sectional survey of Gondar city in 2009. Samples of 240 household heads were selected by a systematic random sampling method. Food Energy Intake (FEI) method and Cost of Basic Needs (CBN) approach are utilized to calculate food poverty line and total poverty line respectively. The internationally accepted $1 a day poverty line was also employed for comparison purpose. Logit model was employed to identify the determinants of poverty. Probabilities of household being poor as dependent variable and a set of demographic and socio-economic variables were employed as explanatory variables. The study found that head count ratio of poverty, poverty gap and poverty severity indices are 0.329, 0.0704, and 0.0225 respectively. Income, family size, remittance, educational level, housing ownership, health status of the households, marital status and employment type have statistically significant impact on the incidence of poverty, whereas sex, proportion of female, parent of household head education, access to basic services, age, and dependency ratio were found to be insignificant. It was also found that poverty incidence widely varies among the different kebele administrative areas in the city. Thus, stakeholders, working on poverty should mobilize their resources and efforts to tackle poverty taking into account the nature and severity of the underlying factors and intervention areas

Corporate Author: 
Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
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Secondary Descriptor: 

Logit Model

Geographic Descriptors: 
Ethiopia, Gonder
Cataloge Date: 
Broad Subject heading: 
Call Number: 
330.963 PRO 2011
Serial Key Title: 
Proceedings of the Eighth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-06-27 23:11:00
Forum or Discussion date: 
2013-02-27 15:43:08
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
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