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

Figures & data

Table 1. Number of population and households in the North Shewa Zone

Name of the area	Total population of each woreda	No. of the household for each woreda	Sampled from each woreda
Shewarobit	24,886	10,048	53
Mehal Meda	120,469	26,770.	141
Debre Berhan	65,231	38,717	204
Total	210,586	75,535	398

Table 2. Summary of definition, measurements of variables, and its expected sign

Variable code	Definition	Type and measurement	Expected sign
Dependent variable HLHD	Household livelihood diversification	“0” On-farm only
		“1” Non-farm only
		“2” Off-farm only
		“3” On-farm + Non-farm
		“4” on farm + Off-farm
		“5” Off farm+ Non-farm
		“6” On farm + off farm + non- farm
Independent variables
SEX	Sex of the household head	Dummy 1 for male, 0 for female	+
AGE	Age of the household head	Continuous (year)	+
MSHH	Marital status of the household head	Dummy 1 married, 0 otherwise	+
EDUCH	Education status of the household head	Continuous (year)	+
TFSH	Total family size of household head	Continuous	+
ATSH	Available technical skill of the household head	Dummy 1 yes ,0 no	+
ACR	Access to credit	Dummy 1 yes, 0 no	+
TREX	Training and extension services	Dummy 1 yes, 0 no	+
AMKT	Access to market	Dummy 1 yes, 0 no	+
DEPENT	Dependency ratio		-

Source: Author’s conception (2022).

Table 3. Distribution of livelihood diversification by sex of the respondents

		Sex of the household head				χ^2-value & p-value
		Female		Male
Household livelihood diversification	On-farm only	17	22.1%	37	12.5%	28.672*** & 0.000
	Non-farm only	12	15.6%	19	6.4%
	Off-farm only	18	23.4%	76	25.6%
	On-farm + Non-farm	6	7.8%	89	30.0%
	On-farm + Off-farm	13	16.9%	22	7.4%
	Off farm+ Non-farm	10	13.0%	51	17.2%
	On farm + off farm + non- farm	1	1.3%	3	1.0%

T*** indicates 1% significance level.

Source: Author’s own calculation (2022), using Stata 14 software.

Table 4. Distribution of Livelihood diversification by marital status of the respondents

Livelihood diversification	Marital status of the household head								χ^2-value
	Unmarried		Widowed		Divorced		Married		& P-value
On-farm only	17	13.1%	1	16.7%	3	13.0%	33	15.3%
Non-farm only	11	8.5%	1	16.7%	3	13.0%	16	7.4%
Off-farm only	32	24.6%	3	50.0%	6	26.1%	53	24.7%	15.024
On-farm + Non-farm	30	23.1%	1	16.7%	3	13.0%	61	28.4%	&
On-farm + Off-farm	18	13.8%	0	0.0%	4	17.4%	13	6.0%	0.660
Off farm+ Non-farm	20	15.4%	0	0.0%	4	17.4%	37	17.2%
On-farm + Off-farm + Non-farm	2	1.5%	0	0.0%	0	0.0%	2	0.9%

Source: Author’s calculation (2022), using Stata 14 software.

Table 5. Distribution of livelihood diversification by age and family size

Livelihood diversification	Age of the respondents		χ^2-value &	Family size						χ^2-value &
	18–64	>64	P-value	1–4		5–8		>9		P-value
On-farm only	14.6%	0		28	15.3%	26	14.1%	0	0.0%
Non-farm only	8.4%	0	31.9***	22	12.0%	9	4.9%	0	0.0%	19.494
Off farm only	25.4%	0	&	34	18.6%	58	31.5%	2	28.6%
On-farm + Non-farm	25.7%	0	0.000	53	29.0%	40	21.7%	2	28.6%	&
On-farm + Off-farm	8.9%	50%		17	9.3%	18	9.8%	0	0.0%	0.077
Off farm+ Non-farm	16.2%	25%		27	14.8%	31	16.8%	3	42.9%
On farm + Off farm non- farm	0.8%	25%		2	1.1%	2	1.1%	0	0.0%

*** indicates 1% significance level.

Source: Author’s own calculation (2022), using Stata 14 software.

Table 6. Distribution of livelihood diversification by educational level

Livelihood diversification	Education of the respondents								χ^2-value &
	1-4		5–8		9–12		>12		P-value
On-farm only	2	22.2%	20	40.8%	14	11.6%	18	9.2%
Non-farm only	0	0.0%	2	4.1%	13	10.7%	16	8.2%	38.422*** & 0.003
Off-farm only	3	33.3%	11	22.4%	27	22.3%	53	27.2%
On-farm + Non-farm	1	11.1%	9	18.4%	34	28.1%	51	26.2%
On-farm + Off-farm	1	11.1%	3	6.1%	12	9.9%	19	9.7%
Off farm+ Non-farm	2	22.2%	4	8.2%	20	16.5%	35	17.9%
On-farm + Off-farm + Non-farm	0	0.0%	0	0.0%	1	0.8%	3	1.5%

*** indicates 1% significance level

Source: Author’s calculation (2022), using Stata 14 software.

Table 7. Distribution of Livelihood diversification by available technical skill

		Available technical Skills of the household head				χ^2-value &
		No		Yes		P-value
Livelihood diversification	On-farm only	9	16.1%	45	14.2%	27.671*** & 0.000
	Non-farm only	6	10.7%	25	7.9%
	Off-farm only	14	25.0%	80	25.2%
	On-farm + Non-farm	8	14.3%	87	27.4%
	On-farm + Off-farm	3	5.4%	32	10.1%
	Off farm+ Non-farm	16	28.6%	45	14.2%
	On farm + Off farm + Non- farm	0	0.0%	4	1.3%

*** indicates 1% significance level.

Source: Author’s calculation (2022), using Stata 14 software.

Table 8. Distribution of Livelihood diversification by access to credit

		Access to credit				χ^2-value &
		No		Yes		P-value
Livelihood diversification	On-farm only	39	19.0%	15	8.9%	27.671*** & 0.000
	Non-farm only	6	2.9%	25	14.8%
	Off-farm only	47	22.9%	47	27.8%
	On-farm + Non-farm	51	24.9%	44	26.0%
	On-farm + Off-farm	22	10.7%	13	7.7%
	Off farm+ Non-farm	39	19.0%	22	13.0%
	On farm + Off farm + Non- farm	1	0.5%	3	1.8%

*** indicates 1% significance level.

Source: Author’s calculation (2022), using Stata 14 software.

Table 9. Distribution of livelihood diversification by training and extension services

		Training and extension services				χ^2-value &
		No		Yes		P-value
Livelihood diversification	On-farm only	49	15.5%	5	8.8%	19.570 & 0.003
	Non-farm only	23	7.3%	8	14.0%
	Off-farm only	86	27.1%	8	14.0%
	On-farm + Non-farm	72	22.7%	23	40.4%
	On-farm + Off-farm	29	9.1%	6	10.5%
	Off farm+ Non-farm	56	17.7%	5	8.8%
	On farm + Off farm + Non- farm	2	0.6%	2	3.5%

Source: Author’s calculation (2022), using Stata 14 software.

Table 10. Multinomial logit estimation result and the respective marginal effects for livelihood diversification activity choices

Livelihood diversification strategy choice
	Non-farm only			Off-farm only			On-farm + Non-farm			On-farm + Off-farm
Variables	Coef.	St.Err.	(dy/dx)	Coef.	St.Err.	(dy/dx)	Coef.	St.Err.	(dy/dx)	Coef.	St.Err.	(dy/dx)
SEX	−0.947*	0.565	−0.111	0.516	0.427	0.024	1.647***	0.547	0.226	−0.359	0.531	−0.097
AGE	0.039	0.033	0.001	0.02	0.022	−0.000	−0.004	0.022	−0.006	0.032	0.031	0.001
MSHH	−0.293	0.24	−0.005	−0.216	0.164	−0.007	−0.057	0.157	0.035	−0.48**	0.195	−0.029
EDUCH	0.209***	0.066	0.005	0.142***	0.055	0.010	0.114**	0.045	0.001	0.128**	0.064	0.002
TFSH	−0.095	0.166	−0.013	0.316***	0.121	0.046	0.089	0.128	−0.019	0.161	0.138	−0.000
ATSH	−0.303	0.636	−0.028	0.192	0.499	0.009	0.716	0.535	0.119	0.797	0.745	0.051
AMKT	−0.431	0.574	−0.061	0.021	0.421	−0.143	1.443***	0.519	0.184	−0.122	0.523	−0.067
TREX	1.642**	0.731	0.078	0.01	0.673	−0.144	1.193**	0.57	0.184	0.913	0.704	0.032
ACR	2.659***	0.585	0.119	0.936**	0.387	0.045	0.894**	0.396	0.029	0.492	0.484	−0.027
DEPNT	−0.04	0.215	0.006	−0.131	0.154	0.007	−0.188	0.163	−0.009	−0.029	0.182	0.012
Constant	−3.832**	1.911		−3.304**	1.322		−4.02***	1.314		−3.38**	1.704
Strategy	Off-farm + Non-farm						On-farm + off farm + non- farm
Variables	Coef.		St.Err.		(dy/dx)		Coef.		St.Err.		(dy/dx)
SEX	0.591		0.504		0.022		−0.656		1.463		−0.001
AGE	0.066***		0.023		0.007		0.075		0.094		4.54e-06
MSHH	−0.333*		0.172		−0.021		−0.687		0.668		−0.000
EDUCH	0.094*		0.051		−0.002		0.311***		0.111		0.001
TFSH	0.223*		0.13		0.009		0.559*		0.326		0.000
ATSH	−0.505		0.513		−0.128		13.862***		0.881		0.001
AMKT	2.161**		0.84		0.156		14.408***		1.236		0.001
TREX	−0.092		0.758		−0.083		3.33**		1.415		0.001
ACR	0.323		0.443		−0.065		2.452***		0.828		0.001
DEPNT	−0.402**		0.188		−0.038		0.284		0.522		0.000
Constant	−4.414***		1.672				−41.035***		6.398
Mean dependent var = 2.602 SD dependent var = 1.604							Prob > chi2 = 0.000
Chi-square = 631.208							Akaike crit. (AIC) = 1265.187
Number of Obs = 374							Bayesian crit. (BIC) = 1524.187
Pseudo r-squared = 0.133							***p < .01, ** p < .05, * p < .1

Notes: I. the reference category is 0 (On-farm only): II. Coeff.* Std. Err.* (dy/dx), represents coefficient, standard error and marginal effect, respectively. Source: Author’s calculation (2022), using Stata 14 software.