Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia

Figures & data

Table 1. Dependent and independent variables used in the multinomial logistic regression

Variables	Description of variables	Expect sign
INDCV (DV)	Income diversification categorical variable
SEX	Sex of HH head (binary) 1 = Male, 0 = Female	+
AGE	Age of HH. Head in years (Continuous)	-+
EDU	Educational Status of HH. head in the year (binary) 1 = literate 0 = illiterate,	+
FSIZE	Family size of HH in number (discrete)	+
MIRAGE	Marital status of HH head (categorical) 1 = married, 0 = Others,	+
LSIZE	Land size in hectares (continuous)	-
TLU	Tropical livestock unit in number (continuous)	+
ACCREDIT	Access to credit habit of HH head (binary) 1 = yes, 0 = no,	+
ASAVE	Access to Saving habit of HH heads (binary) 1 = yes, 0 = no,	+
MKTDIST	Distance to market in kilometers (continuous)	-
REMITTANCE	Access to remittance of HH head (binary) 1 = yes, 0 = no,	+
TREATMENT	Catagories of Kebele based on distance from urban center (binary) 1 = treated, 0 = control,	-
EXPENDITURE	Annual consumption expenditure of HH in birr (Continuous)	+

Sources: Compiled from own field survey data (2021)

Table 2. Summary statistics for continuous variables

Variables	Obs	Mean	Std. Dev.	Min	Max
Age of Households in years	397	45.2	9.9	25	71
Family Size in number	397	4.3	1.2	3	7
Land Holding Size in hectares	397	1.2	0.6	0.2	2.8
Distance to market in km	397	20.3	10.2	2	37
Annual Consumption Exp in birr	397	7015.8	2607	735.8	18,788.7

Sources: Compiled from own field survey data (2021)

Table 3. T-test distribution of consumption expenditure per adult equivalence between groups

Explanatory variable	Obs	Mean value			P-value	Mean value			p-value
		Male	Female	Combined		Control	Treated	Combined
Annual Consumption Exp in birr	397	7000	7113	7016	0. 7638	8092	5207	7016	0.000***

Sources: Compiled from own field survey data (2021)

Table 4. Percentage distribution of household income diversification by sex and treatment

Livelihood diversification	Sex			P-value	Treatment			P-value
	Female	Male	Total		Control	treated	Total
Farm activities	32(13.1%)	212(86.9%)	244(100%)		202(82.8%)	42(17.2%)	244(100%	0.000***
Farm & unskilled activities	21(18.3%)	94 (87.6%)	107(100%)	0.218	35(30.4%)	80(69.6%)	115(100%
Farm & transfer activities	3(7.9%)	35(92.11%)	38 (100%)		12(31.6%)	26(68.4%)	38(100%)
Total			397(100%)		249(100%)	148(100%)	397(100%)

*** indicates a 1% significant level.

Source: Compiled from own field survey data (2021)

Table 5. The multinomial logistic regression estimation result

Multinomial logistic regression	Number of obs = 397
	LR chi2(26) = 139.21
	Prob > chi2 = 0.0000
Log-likelihood = −280.8116	Pseudo R2 = 0.1986
Farm activities	(Base outcome)
Variables	Farming and Unskilled income activities		Farming and Transfer income activities
	RR.	Std. err	RR.	Std. err
SEX of HH. head	0.834	0.348	2.301	1.816
AGE of HH. head	1.034**	0.016	1.033	0.024
EDU of HH. head	1.231	0.385	1.345	0.592
FSIZE HH. of head	0.867	0.138	1.228	0.267
LSIZE HH. f head	0.670	0.459	0.786	0.795
MRAGE HH. of head	0.637	0.345	0.472	0.394
TLU	0.901	0.074	0.911	0.121
CREDIT of HH head	0.767	0.349	1.271	1.040
ASAVE of HH head	1.173	0.375	1.761	0.816
MKTDISTANCE	0.993	0.032	0.957	0.048
REMITANCE of HH head	0.679	0.293	1.742	1.244
TREATMENT	7.111***	4.66	8.207**	8.102
EXPENDITURE of HH head	1.000	0.000	1.000**	0.000
_cons	0.348	0.579	0.001***	0.003

***, **, and * indicates P < 0.01, P < 0.05, and P < 0.1 significant level, respectively.

Source: Compiled from own field survey data (2021)

Table 6. Marginal multinomial logistic regression estimation

Variables	Farming activities		Farming & unskilled income activities		Farming & transfer income activities
	Dy/dx	Std. Err.	Dy/dx	Std. Err.	Dy/dx	Std. Err.
SEX of HH.	−0.0112	0.0676	−0.0620	0.0658	0.0732	0.0603
AGE of HH.	−0.0055**	0.0024	0.0042*	0.0024	0.0013	0.0017
EDU HH	−0.0376	0.0478	0.0222	0.0474	0.0154	0.0326
FSIZE HH.	0.0093	0.0242	−0.0311	0.0237	0.0218	0.0159
LSIZE HH	0.0591	0.1040	−0.0556	0.1063	−0.0036	0.0766
MRAGEHH.	0.0860	0.0843	−0.0441	0.0826	−0.0419	0.0622
TLU HH.	0.0166	0.0125	−0.0133	0.0133	−0.0034	0.0103
ACREDIT HH.	0.0232	0.0721	−0.0525	0.0726	0.0294	0.0628
ASAVE HH.	−0.0425	0.0486	0.0038	0.0491	0.0387	0.0349
MKTDISTAN HH	0.0027	0.0049	0.0005	0.0052	−0.0032	0.0039
REMITTANCE HH.	0.0253	0.0694	−0.0844	0.0639	0.0591	0.0523
TREATMENT	−0.3269***	0.0936	0.2365**	0.1005	0.0905	0.0747
EXPENDITURE	−0.0001*	0.0001	1.74e-01	0.0001	0.0001**	8.06e-1

***, **, and * indicates P < 0.01, P < 0.05, and P < 0.1 significant level, respectively.

Source: Compiled from own field survey data (2021)

Figure A1. Multicollinearity test.

Data availability statement

The data presented in this study are available on request from the author.