Tegodie Hibstu

Urban Household Poverty:: the Case of Addis Ababa City Residents, Ethiopia Tegodie Hibstu

It is true that urban areas are hopes of life for residents. They are centers of income, commerce, wealth, education and the like. On the other hand, there are several challenges of which one of them is urban poverty. This study assesses the determinants of urban household poverty in Addis Ababa based on survey data using logistic regression. Based on the cost of basic needs approach, out of the 3462 surveyed households, 1415 of them were found to be poor, that is, the head count is 40.9%. The poverty gap and severity of poverty indices were found out to be, 0.15 and 0.07, respectively. This calls for urgent intervention aimed at fighting poverty. Among the variables (factors) used in this study, place of residence, household size, income source,educational and employment status of heads of households, ownership of house and ownership of tap water inside the compound were found out to be significant determinants of the poverty status of households in Addis Ababa.