Rural household′s livelihood strategy choices in West Badawcho District, Central Ethiopia: a multivariate probit model approach

Farm households facing land scarcity and droughts have adopted diverse livelihood strategies for survival. This study aims to identify livelihood strategies and the factors influencing their choices in the West Badawcho District of Central Ethiopia. We surveyed 285 households using a three-stage sampling technique and analyzed the data with descriptive statistics and a multivariate probit econometric model. Results showed that 64% engaged in on-farm activities, while 25–24% pursued off-farm and non-farm livelihoods, respectively. On-farm activities contributed 56% of the income, while off-farm and non-farm activities contributed 30–24%, respectively. Key determinants for livelihood choices included household age, education, family size, wealth, land and livestock ownership, access to extension services, and cooperative membership. The findings indicate that livelihood choices vary across rural areas based on local factors. Thus, the government should focus on enhancing land productivity, promoting technology, improving financial access, and creating income opportunities.