The extent of livelihood diversification on the determinants of livelihood diversification in Assosa Wereda, Western Ethiopia

Abstract This study was conducted to examine the determinants of diversification of livelihoods to investigate the degree of diversification of households’ livelihoods in Assosa wereda, Benshangul Gumuz Regional State, in western Ethiopia. A total of 320 sample rural households were selected by using systematic sampling technique from four kebeles. Both qualitative and quantitative data collected through a structured questionnaire, key informant interview, focus group discussions and observation. The data were analyzed using descriptive statistical tools, the multinomial logit regression model, and Simpson Diversification Index. The result of the study show, of the 14 determinants of diversification of livelihoods identified: level of education, dependency ratio, access to irrigation, and household urban linkage were significant predictors of diversification of livelihoods. Whereas household age and sex, road distance, credit access, and household media access were insignificant predictors of diversification of livelihoods. Meanwhile, land hold size, livestock holding size in Tropical Livestock Unit, extension contact, cooperative member and total household income couldn’t have any association with household diversification of livelihoods in real conditions on the ground. Ultimately, the Simpson Diversity Index result showed that there was no diversification rather than "specialization" in livelihood. The study therefore urges more diversification opportunities in poverty alleviation and development.