ECONOMETRIC ANALYSIS OF DETERMINANTS OF LIVELIHOOD OUTCOMES OF COFFEE PRODUCERS IN LALO ASSABI DISTRICT, ETHIOPIA: EDUCATION AND INCOME IN FOCUS

Abstract

ABSTRACT This study aims at identifying major determinants of livelihood outcomes with particular emphasis on the schooling of children proxy to wellbeing, and annual total income of coffee producers in Lalo Assabi district, Ethiopia. Random sample of 141 coffee producers were selected by systematic sampling for interview based on the required sample size. Both descriptive and inferential statistical methods were employed for data analysis. The result of the study explored that the literacy rate in the study area is 78.40 expressed as a percentage. Around 70% of the annual total income of the sampled households is generated from coffee marketing and/or production. The result of multiple linear regressions revealed that sex, age and year of education of household head as well as square root of annual total income and distance to preparatory school had significant relationship with schooling of children. Similarly, age of household head, tropical livestock holding, access to improved coffee seed, access to credit and total land owned by household had significant relationship with log of annual total income of coffee producers. Thus, these variables need special attention if the wellbeing and annual total income of coffee producers are to be increased