Status and determinants of poverty and income inequality in pastoral and agro-pastoral communities: Household-based evidence from Afar Regional State, Ethiopia

Araya M. Teka, Gabriel Temesgen Woldu and Zeremariam Fre

World Development Perspectives, 2019, vol. 15, issue C, -

Abstract: This paper analyzes poverty and its determinants and income inequality in pastoral and agro-pastoral communities in Ethiopia. 2295 households from zone 1 and zone 2 of the Afar region were surveyed and examined using the FGT index, the Gini coefficient, and logistic regression. 47.6 percent of the households are poor, with poverty gap index of 0.178 and poverty severity index of 0.092. Food poverty accounts for 33.7 percent with an income gap of Birr 33 per month. Food poverty is highest in pastoral (35.6%) than the agro-pastoral communities (29.8%). 35.6 percent of PSNP non-participants and 32 percent of the participant households are poor. Gender of the household head, family size, access to credit, mobility, participating in safety net programs and local institutions, distance to market and remittances are determining poverty in the area. There is an alarmingly high degree of income inequality (0.592) in the study area. The lowest Gini index (0.433) is found in Koneba district, and the highest index (0.616) is observed in widowed heads of households. Strengthening the poverty reduction programs and introducing diversified income schemes; modernizing local institutions, increase provision of microfinance services, introducing packages specific to women and youth are recommended to address the high poverty and inequality in Afar.

Keywords: Afar; Determinants; FGT index; Income inequality; Pastoral; Poverty (search for similar items in EconPapers)
JEL-codes: J15 P25 R11 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wodepe:v:15:y:2019:i:c:6

DOI: 10.1016/j.wdp.2019.100123

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