Determinants of urban households’ livelihood diversification strategies in North Shewa Zone, Ethiopia

Abstract

Livelihood diversification is important for urban development to end poverty and food insecurity problems. In Ethiopia, urban livelihood diversification is quite low specifically in North Shewa Zone. Therefore, this study aims to identify the determinants of livelihood diversification strategies for urban households in the North Shewa Zone. The data were collected through both primary and secondary data collection methods. A multistage sampling technique was employed to select 398 household heads from three urban areas of the North Shewa Zone. A multinomial logistic regression model was employed to analyze the determinant of livelihood diversification strategies in the study area. The results of the model revealed that livelihood diversification strategies were determined by the age of the household head, education status, family size, credit access, market access, and training and extension service positively and the dependency ratio was negative. The study recommends that the zonal and regional governments of Ethiopia should develop a comprehensive urban development policy that could empower off-farm and non-farm urban livelihood diversification strategies besides the farm activities.

Keywords:

• Livelihood diversification
• determinants
• multinomial logit model
• North Shewa Zone

PUBLIC INTEREST STATEMENT

Urban livelihood diversification is a crucial issue for economic development. This study aims to identify the determinants of livelihood diversification strategies for urban households in the North Shewa Zone. This study revealed that the age of the household head, education status, family size, credit access, market access and training and extension service positively, and dependency ratio are the determinants of urban livelihood diversification strategies in North Shewa Zone, Amhara Region, Ethiopia.

Acknowledgment

We would like the editor and anonymous reviewers for their supportive comments and suggestions.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Ethical approval

The ethical committee of Debre Berhan University has given permission to conduct the study. Oral approval was obtained from the study respondents.

Additional information

Funding

All costs of data collection for the study were covered by Debre Berhan University.

Notes on contributors

Girma Mulugeta Emeru

Girma Mulugeta Emeru is a Lecturer in the Department of Economics at Debre Berhan University. His area of interest lies in researching the livelihood diversification strategies, women labor force participation, banking and microfinance, poverty, and food security.

Abebaw Hailu Fikire

Abebaw Hailu Fikire is a lecturer at Debre Berhan University, Ethiopia. His current research interests are development issues like urban and rural development, agricultural economics, food security microeconomic, and macroeconomics policy analysis.

Zemenu Bires Beza

Zemenu Bires Beza is a lecturer at Debre Berhan University. His research interest includes tourism management.