The effect of livelihood diversification on food security: evidence from Ethiopia

Abstract

Livelihood diversification is relevant in poverty reduction, improve food security and a means of coping mechanism and risk management for survival of households. The research intended to examine the dynamics of livelihood diversification and food security over time, investigate the determinant factors of participation rate among household heads on livelihood diversification and to examine its effect on food security of rural and town households of Ethiopia based on the secondary data of Ethiopia living standard measurement survey. Balanced panel data employed enclosing a total 3729 samples representing national level of Ethiopia. The study used the descriptive analysis, Simpson diversification index and random effect logit model. Dynamics of livelihood diversification and food security observed over time. The random logistic regression model revealed that, household size, gender (female) and distance to market affect the livelihood diversification positively & significantly. Whereas, Age of household head, location (rural), distance to main road, credit access, assistance and experience of shocks influenced the probability of livelihood diversification negatively and significantly. Households who experienced shock and engaged in diversified livelihood have lower food security than being a diversified alone. Policy makers and other stakeholders need to integrate on implementations of livelihood strategies to improve food security, building resilience and vibrant economy.