Determinants of Household Choice of Livelihood Diversification Strategies in Selected Drought Prone Areas of the Southern Nations Nationalities and Peoples’ Region, Ethiopia

Abstract

The study aimed at identifying the determinants of household's choice of livelihood diversification strategies. The result of the study based on a total of 384 sample respondents selected using multistage sampling procedures. Furthermore the study employed bivariate Probit econometric model to identify factors affecting household's choice of livelihood diversification strategies. The result of the descriptive statistics showed that households in the study area were engaged in four types of combination of livelihood diversification strategies: on-farm only, on-farm plus off-farm, on-farm plus non-farm, and on-farm plus off-farm plus non-farm with their respective share of 34.9, 11.5, 47.9 and 5.7 percent respectively. The econometric model result showed that wealth, sex, education level, livestok holding, and training were negatively and significantly determined households choice of off-farm livelihood strategies; whereas past erosion hazard and distance to market were positively and significantly determined their choice of off-farm livelihood strategies. On the other hand, wealth, dependency ratio, past erosion hazard, market availability, yield loss/reduction due to drought, distance to credit source, distance to market, frequency of extension contact, and ICT ownership (Radio, TV and/or Mobile phone