Determinants of Multidimensional Poverty in Rural Ethiopia

This study investigates the key socio-economic and geographic factors—specifically distance from markets and zonal centers—that influence multidimensional poverty in rural Ethiopia, using the New Rural Multidimensional Poverty Index (NR-MPI). The analysis draws on pooled data from four rounds (2012–2019) of the Ethiopia Socioeconomic Survey (ESS). A multilevel mixed-effects logistic regression model was applied to assess how household and geographic characteristics affect poverty outcomes. Results reveal that the education, rural livelihoods and resources, and living standards dimensions contribute about 76% to rural multidimensional poverty. Several socio-economic and geographic variables showed statistically significant effects. Notably, each additional year of age reduces poverty likelihood by 3.9% points, while each added household member increases it by 3.6 points. Direct agricultural work raises poverty by 4.9% points per hour, whereas non-agricultural work reduces it by 1.6 points per hour. Each kilometer farther from a market increases poverty risk by 1.8 points, while distance from the zonal center unexpectedly shows a slight negative association. Furthermore, households using chemical fertilizers are 38% less likely to be multidimensional poor. Overall, the findings highlight the critical role of both socio-economic and geographic factors in shaping rural poverty.