Ethiopian Journal of Economics

The AJOL site is currently undergoing a major upgrade, and there will temporarily be some restrictions to the available functionality.
-- Users will not be able to register or log in during this period.
-- Full text (PDF) downloads of Open Access journal articles will be available as always.
-- Full text (PDF) downloads of subscription based journal articles will NOT be available
We apologise for any inconvenience caused. Please check back soon, as we will revert to usual policy as soon as possible.

Determinant of Poverty in Ethiopia

TK Deressa, MK Sharma


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.

AJOL African Journals Online