Multidimensional Poverty Analysis in Urban Ethiopia; A case Study of Dire Dawa City Administration

The study was carried out in four urban kebeles of nine urban kebeles of DireDawa city administration with the main objective of investigating extent of multidimensional poverty in the city. To attain the objective, cross-sectional survey design was employed. The, primary data was collected from 230 randomly selected sample households by proportionally allocating to all four kebeles using survey questionnaire. In addition, key informant interview and observation were employed to generate qualitative data from the selected primary sources. Descriptive analysis was used to analyze the extent of multidimensional poverty and Alkire-Foster (AF method) was used to analyze the multidimensional poverty by using three dimensions and eleven indicators. Accordingly, incidence, intensity, multidimensional poverty index (MPI), raw headcount ratio, censored headcount ratio, vulnerability, sevirty and contribution of each poverty indicators to the poor people were computed. The result revealed that the extent of overall multidimensional poor was 43.6% of the sample households’ with the intensity and MPI of 44% and 19.8% respectively. From theselected indicators, cooking fuel (15.9%), and illness/ disability and morbidity/ (15.9%) were the highest contributors to the overall poverty incidence in the kebeles. While looking at the overall contribution of dimensions to the overall multidimensional poverty, the living standard dimension contributes almost 60%. But, health dimension and education dimensions contribute about 21% and 19 % respectively. Therefore, the government of the city administration has to work in collaboration with health bureau water and mining bureau and other stakeholders so as to make awareness and minimize the problem.