Factors Affecting the Level of Rural Households Livelihood Diversification in Gamo Zone, Southern Ethiopia

Livelihood diversification is enchanting a significant effect in generating household’s income. The livelihood diversification includes:on-farm, non-farm and off-farm strategies which are undertaken to get extra income and moderate hazard and insecurity. The purpose of this study was to examine the factors affecting the level of rural household livelihood diversification in Gamo Zone, Southern Ethiopia. The study was conducted by using a cross-sectional research design. It is a quantitative dominant concurrent mixed research methodology where the qualitative research is complemented with interpretations and triangulation. By applying multi-stage random sampling technique, a sample size of 400 household heads from 6 sample villages was selected and data were collected using interview schedule and via key informant interviews and focus group discussions. Descriptive statistics were analyzed and presented by using tables, graphs and figures while chi-square-test and F-test were employed to make statistical inferences. Tobit model was employed to identify the intensity of factors affecting of rural household’s livelihood diversification. Out of the 14 hypothesized explanatory variables, 6 variables namely age, education, access to extension, media access, distance to urban centers and training were found to have significant effect in rural household livelihood diversification decision. Therefore, the findings of this imply that rural households’ development policies should consider these factors in designing rural household livelihood diversification strategy.