Abstract:
This paper examines rural household livelihood diversification using cross sectional data
collected from Malle woreda, South Omo Zone, Southern Ethiopia. The study was to identify
factors affecting rural households’ choice of livelihood strategies in study area, to identify
factors affecting households’ level of income diversity and to determine contribution of various
livelihood strategies to household income. The data were obtained through both primary and
secondary data collection methods and multistage sampling techniques were used in selecting
the study site and respondents. Both descriptive statistics, inferential statistics (ANOVA, chi
square test) and econometric models were used to analyze the data. Results of the multinomial
logistic regression model revealed that households choice of livelihood diversification strategies
were positively affected by household head’s level of education, family size, access to small-scale
irrigation, access to extension services, access to media and age of household head, cultivated
land size and livestock ownership negatively affected. The results of the Tobit regression shows
that household head’s’ level of education, cultivated land size, access to small-scale irrigation,
access to extension services, annual cash saving and cooperative membership had positive and
significant effect on the level of livelihood diversification. On the other hand, age of household
head, livestock ownership and distance from resident to nearest market had significant but
negative effects on level of livelihood diversification. Majority of households were participated
only on on-farm income source, this shows that households livelihood lowly divers. The result of
this study suggests that government and non-governmental organizations should consider these
factors in designing sustainable rural household livelihood diversification strategy. The result of
this study suggests that Malle Woreda education office should be promoting formal education
focusing on adult literacy. Create awareness for households to reduce the number of local
livestock in order to focus on producing high-quality dairy and meat livestock breeds. Market
oriented crops should be provided to increase their family income. Rehabilitate the existing
irrigation schemes and expanding modern irrigation dams to enhance the level of production.
Strengthening the institutional service for rural households to improves the livelihood of the
rural households
