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Consumption-Based Measures And Analysis Of Urban Poverty: The Case Of Maichew, Southern Tigrai: Ethiopia

Abstract: 

This study examines the extent and vulnerability to poverty of households of urban residents in Maichew, southern Tigray Regional State, Ethiopia. It tries to look at the welfare status at household level through different micro-analytical techniques like Foster, Greer and Thorbecke (FGT), OLS, 3FGLS and Gini coefficient. Using the Cost of Basic Needs approach, total poverty line of the study area is Birr 251 per month per adult. Poverty profile of the town reveals that 31.70% of households are below poverty line. Multivariate analysis results illustrate that male headed households, educational level of the household head and spouse have positive impact on welfare while family size, square age of household head, divorced and widowed headed households have negative effect to welfare. Tobit model described factors affecting poverty severity of the poor households. Accordingly, pensioner headship, family size and age square of household head aggravate the probability of falling to poverty severity. However, being petty trade household head, household head's education, ownership of durable property reduce the probability of falling to poverty severity. Using 3FGLS, the mean probability of vulnerability to poverty is 0.4 which is poverty head count index next period and it ranges from 0.041 to 0.89. Gini coefficient indicates 0.49 of total inequality. Factor decomposition of inequality typifies that property index and social transition of household head take the greater share of 14.6% and 12.4% policy implication of the results respectively

Corporate Author: 
Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: 
Ethiopian Economic Association (EEA)
ISBN/ISSN: 
978-99944-54-18-1
Primary Descriptors: 

Consumption; Vulnerability to poverty

Secondary Descriptor: 

Inequality, urban Maichew

Cataloge Date: 
02/27/2013
Broad Subject heading: 
Poverty
Call Number: 
330.963 PRO 2011
Serial Key Title: 
Proceedings of the Eighth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
I
Publication date: 
2013-06-27 23:11:00
Forum or Discussion date: 
2013-02-27 15:43:09
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annualy