Drivers of household poverty in Somaliland: empirical evidence

Despite global progress in poverty reduction, poverty remains a persistent challenge in Somaliland. This study aims to identify the factors associated with household poverty in Somaliland, addressing a notable gap in the literature on de facto states, where limited empirical research has examined the unique conditions shaping poverty. The study analysed data from a sample of 12,290 households, employing an explanatory research design and a quantitative approach using a binary logistic regression model. Poverty was measured using a composite wealth index. Findings revealed that marital status (OR = 0.516), employment status (employee) (OR = 0.535), household size (OR = 0.917), region or province (OR = 0.899), urban residence (OR = 0.862), and education (OR = 0.143) are all associated with lower odds of a household being poor. Age squared (OR = 0.960) has a negative and significant effect on poverty. Our result suggests that improvements in education, employment, and social conditions, along with regional and urban advantages, play a crucial role in reducing household poverty in Somaliland.