Multidimensional Measure of Poverty in Urban Ethiopia

Abstract

This study analyzed multidimensional poverty in urban (small, medium and large towns) Ethiopia. As social well-being or poverty is a multidimensional phenomenon, using a multidimensional measure of poverty helps avoid problems surrounding the conventional measures of poverty and helps show clearly the realities of households. In this line, this study analysis used three dimensions with ten indicators to construct a multidimensional index of poverty using third rounds of Ethiopian Rural Households’ Socioeconomic Survey data set. The study also employed a logit analysis for examining determinants of poverty. The results reveal that intensity, severity, and depth of urban Ethiopia multidimensional poverty are 71.4%, 46.1% and 32.9% respectively. The poorest of the poor are those residing in small town areas compared to medium and large towns even if the difference is low. Female household heads experience a greater breadth and severity of multiple deprivations relatively than male household heads. Moreover, demographic and household heads’ characteristics are major factors in determining poverty. Targeting programs in living standard, health and education dimension will reduce poverty substantially. It can be achieved by enforcing policies and collaborate with foreign concerned organs.