Factors Affecting the Choice of Rural Households’ Livelihood Diversification: The Case of Sayo District, Kelem Wollega Zone, Oromia National Regional State, Ethiopia

Abstract

The carrying capacity of agriculture to attain livelihood security is extremely declining from time to time. Diversifying livelihood strategies in the current time of rural households to sustain and secure their livelihoods as well as to supplement their agriculture have become a common phenomenon in the study area. Hence the study is to analyze factors affecting the choice of rural households’ livelihood diversification in the district. The data were obtained from 202 sample household heads that were selected proportionally from three kebeles. The study used descriptive statistics and an econometrics model. Accordingly Multinomial logit model was employed in analyzing the factors affecting the choice of rural household’s livelihood diversification strategies. The result indicates that among 16 hypothesized explanatory variables, 11 variables were found to affect the choice of rural household’s livelihood diversification strategies. Accordingly, sex of household head, land holding size, input utilization and participation in social activity have positive and significantly effect on the rural household’s livelihood diversification. Furthermore, family size, frequency of contact with agricultural extension agent, remittance received and agro ecology location have negative and significant effect on the rural household’s livelihood diversification. However, livestock holding, irrigation facility and access to credit have positive effect across on the rural household’s livelihood diversification. Therefore, the results of this study suggest that development interventions, policies makers and supportive services should be designed and strengthened to promote livelihood activities in addition to agriculture through awareness creation to improve the overall wellbeing of the rural societies in improving livestock holding, irrigation utilization and credit facilitation.