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Journal of Extension Education
Vol. 27  No. 2,  2015

Determinants of Female-headed Households’ Livelihood
Diversification Strategies Choice in Ambo District, Ethiopia

Mulu Debela Ofolsha1 and J. Paul Mansingh2

ABSTRACT
The study has concluded that diverse livelihood options are available and thus, FHHs

pursue diverse range of activities that draw on their labor and time. However, the
participation levels vary within Female - Headed Households(FIHs). The variation is mainly
in terms of the activity they diversify into and conditions under which diversification are
made. Generally, FHH participate in low-return and high risk and last resort activities.
The study concludes that livelihood diversification strategies choice of FHH is determined
by a number of factors. Hence, it is recommended that the livelihood of FHHs needs to be
recognized and policy intervention should concentrate on improving access to assets within
the aim of expanding livelihood options rather than assuming households are spatial
homogenous and individual engage in one type of activity only.

 Ethiopia, as compared to the rest of the
world, is a region most grounded in poverty
due to periodic drought and extreme variable
environment making agriculture a risky
economic activity.  Like other Sub-Saharan
African countries, the country is characterized
by a complex, diverse and risk-prone
production environment (Chant, 2010 and
Degefa, 2005). As a consequence, agricultural
production has been deteriorating over time,
and forces rural people in the region to look
for alternative employment option other than
agriculture. Ethiopian rural female-headed
households (FHH) are not exceptional to this
scenario. Various empirical studies show that
different livelihood diversification strategies
exist in Ethiopia, even though the forms and
people’s participation level may vary which is
not an exception for FHHs. It is also noticed
that female headship has been linked to

unfavorable circumstances, such as family
dissolutions, single parenthood, or facing
socio-cultural constraints (Metasebia, 2009).
As a consequence, FHHs have been largely
considered a vulnerable and at risk of poverty
group, both among the academic and policy
making spheres.

The existing literature has pointed out that
FHHs in developing countries tend to be
poorer than the male, and are in situations
where general insecurity and vulnerability
prevail, and a similar conclusion was made
in the case of Ethiopia (Tizita, 2013 and
Metasebia, 2009). It has also generally been
observed that female-headed households are
more food-insecure than male-headed
households. This may be due to “triple
burden”. A research has highlighted particular
constraints affecting FHH in pursuing
remunerative livelihoods, especially in the

1-Director (Gender, Diversity & Inclusive Education), Ambo University, Ambo, Ethiopia and 2- Professor, Department
of Rural Development & Agricultural Extension, Ambo University, Ambo, Ethiopia.



Journal of Extension Education5424

rural areas. On the other hand ‘feminisation
of poverty’ has been much in discussion, in
both the academic and development policy
circles of the phenomena. However, there is
little clarity about what the feminisation of
poverty means, or about whether such a trend
can be empirically verified. Nevertheless, as
several scholars have pointed out, we need to
go beyond the simple equation FHH pursue
last resort livelihood options.

In addition, a substantial body of literature
now exists to show that men and women in
Ethiopia experience diversification of
livelihood differently (Tizita,  2013). But what
is less clear is a disparity within FHHs using
different parameters. It is well-documented
that women almost everywhere are
disadvantaged in relation to men in their
access to the different livelihood assets (Chant,
2010 and Metasebia, 2009). However,
research work on FHH livelihood
diversification strategies and nature of
activities under condition of resource scarcity
in study area is limited. The study, therefore,
aims at identifying the existing livelihood
diversification strategies and assesses factors
that determine the FHH choice of livelihood
diversification strategies in the given district.

METHODOLOGY

The study region is located in West Shewa
Zone, Oromia Regional State, Ethiopia. Ambo
District is located in central part of Ethiopia
and lies within altitude of 1380m to 3300
masl.  Agro-climatically, the district is divided
in to, highland, mid-highland and low land

which account 35 per cent, 50 per cent and 5
per cent respectively. The mean annual
rainfall of the area ranges from 1300mm to
1700mm. The mean annual range of
temperature ranges from 23-28oC having an
average temperature of 22o C. The major
economic activities are agriculture. Crop
production is mostly dependent on rain-fed
and major crops produced in the area are
wheat, maize, teff, barely, sorghum and enset.
Livestock is also kept in most of the district.
Multi-stage sampling techniques were used
to select some respondents. First, the area is
stratified into relatively higher-potential and
relatively low-potential using agro-ecology and
nearness to market as criteria to capture the
different farming systems. Major source of
livelihood in the district are applied and then
three kebeles from relatively high potential
and two kebeles from low potential were
selected using simple random sampling
technique. Then stratified into male- and
female-headed households and finally 104
FHH were selected by using random sampling
method. Standard tools of structured
household survey interview schedule and
checklist were designed. Descriptive statistics
such as mean, percentage, frequency and
along with multinomial logit model were used
and results were transcribed, interpreted and
analyzed accordingly.

FINDINGS AND DISCUSSION

Age of household head affects labor
availability, fertility behaviors and dependency
ratio of household members which in turn



5425Determinants of Female-headed Households’ Livelihood
Diversification Strategies Choice in Ambo District, Ethiopia

affect the nature and degree of households’
participation in different livelihood activities.
It is statistically significant at 5 per cent level
of probability among different groups of
diversification options. The total family size
(TFS) of the study shows that the average
family size is 3 and it is slightly lower than
the national average family size of 5 people
per household and is consistent with previous
research on Ethiopia. In a similarly manner,
labor availability which is mainly explained
by TFS is one of the potential factors that affect
FHHs participation in different income
generation activities. Generally, FHHs on an
average have fewer economically-active
household members and were in a
disadvantaged position in deploying family
labour for own farm production. Hence, they
face labour constraints which subject them
to hire labour. In the same token, lacking an
adult male ‘breadwinner’ lone mother units
not only have to do without men’s earnings,
but also be disadvantaged by higher
dependency ratio than households which
comprise two working parents (Chant, 2010
and Metasebia, 2009).

The study reveals that land has been and
is still transferred from generation to
generation through male and the daughter
would start a life with her husband after
marriage while the son follows the footsteps
of his father and can manage the whole family
in case. Inheritance rules of patrilineal society
in principle exclude women from having
access to land right. However, the result
indicates that if the marriage is legitimate a
widowed wife may remain in the late

husband’s village with her children and
continuous cultivating the husband’s land.
Mohammed (2014) confirmed that rural
women of Ethiopia mainly access to land
through marriage. As to farm size the result
of the study indicates that the mean land
holding size is 2.28 ha and it is higher than
the national land holding size (1.24 ha) per
household and lower than the study found
by Mohammed (2014), i.e. 3.6 ha. The current
study focuses on de facto and de jure FHH
not on women gendered aspects. Land
markets in Ethiopia are fairly inflexible as
compared to other parts of the world. The
usufruct right continues as long as at least
one member of the family is farming the land.
The study confirms that mostly poor farmers
in general and FHHs in particular which rent
out land while the better-off rent in land.
Studies conducted by Start et. al. (2005);
Mossa (2013) and Degefa (2005) state that the
most popular who rent-in land are the male-
headed in the category of relatively rich and /
or of better off-farmers. The result indicates
that despite low holding size of FHH share-
out and rent-out their land the fact that they
face labor shortage, gender division of labor
and lack of oxen.

 Livestock production is the central role to
the households’ economy and is important in
farming system. They are considered as the
main source of cash income and food as well
as the foundation of prestige and power. The
mean number of livestock in TLU is found to
be 2.99 and is 3.569 for farm based livelihood
diversification which also varies across
different livelihood options. Oxen are key



Journal of Extension Education5426

assets in the study areas in which farming
system is characterized by drought power. The
mean number of oxen owned is 1.35 and it
varies across different livelihood options.  This
indicates that FHH face oxen shortage and
hence they depend on pairing oxen with
others, borrowing oxen from relatives, hiring
oxen and share-cropping are among options
being used by the respondents. In addition,
exchanges of labour force with oxen are usual
practices and are similar with the findings of
Mossa (2013) and Degefa (2005).

The study has shown that only 15 per cent
of the response has access to irrigation.
Diversion of river is a common source of water
for irrigation purpose in which access to and
distribution is controlled through traditional
water user committee. But access to such
water source is determined through how far
the land from water sources is. FHH tends to
avoid labour intensive productions such as
vegetable through irrigation scheme because

they face difficulty because of double burden
in circumstance where fewer economically-
active household members are available. Sara
(2007) and Mossa (2013) contested that
women bear the burden of household chores
that result in time and mobility constraints
compared to male-heads. The study showed
that 65 per cent of the respondents are
accessed to credit services. Of these 25 per
cent those whose livelihood is farm+ non-farm,
and the rest is lower than this. The study
indicates most households did not have access
to credit services from formal sources than
informal sources. Sara (2007) and Mossa
(2013) argue that FHHs are disadvantaged
with regard to credit services because of
problems like lack of information about credit
programmes, low and irregular income, and
lack of collaterals. Hence, they are subjected
to receive credit from informal sources which
charge high interest rates. The study also
shows that FHH access to use of chemical
fertilizer and different chemicals.

Table 1.
Descriptive Statistics for Continuous Explanatory Variables

*** and ** 1 and 5% level significant respectively.

F-valueVariables

Livelihood Diversification Strategy of FHHs

Farm Farm +non-
farm

Farm
+off-farm

Farm + non-
farm +off-farm

Total

Mean Mean Mean Mean Mean
Age 42.5000 40.8000 37.2222 41.7778 41.1635 4.188**

DR 1.1264 1.5840 2.3278 1.2889 1.4644 3.187***

TFS 3.3889 4.0800 4.7778 3.5556 3.8558 2.564

LS 2.7896 1.9763 1.9333 2.2878 2.2811 7.504**

TLU 3.5693 2.9846 1.3778 2.4244 2.9995 .014**

 NOX 1.6111 1.2800 1.6667 .4444 1.3558 .101***



5427Determinants of Female-headed Households’ Livelihood
Diversification Strategies Choice in Ambo District, Ethiopia

Household Livelihood Diversification
strategies

Livelihood strategies are those activities
undertaken by smallholder households to
provide a means of living, and its aim are to
ensure households’ economic and social
security. The study reveals that the major
livelihood diversification strategy practiced by
FHH of Ambo Distrcit of different location are
farming which include crop-based and

livestock based diversification strategies; Non-
farm based diversification strategies include
petty trading, hand crafts and selling of
unskilled labour force. In semi-urban areas
of the District they engage in preparation of
local food and drinks- Tella, Areke, labour
wage and prostitution, which are few of the
livelihood option being practiced by them. The
finding of this research supports the view of
other scholars such as Selamawit (1994) and
Metasebia (2009) which have stated that the

Table 2.
Descriptive Statistics Result for Discrete Variables

X2-
value

Variables

Livelihood Diversification Strategy of FHHs

Farm
only

Farm
+non-
farm

Farm
+off-farm

Farm + non-
farm +off-farm

Total

Irrigation use Yes 20 9 1 2 32 49.846***
No 27 46 8 7 88

Fertilizer use Yes 30 35 7 6 68 48.231***
No 6 15 2 3 26
No 19 34 5 7 64

use chemicals Yes 25 35 6 6 72 48.231***
No 11 15 3 3 32
No 21 30 4 7 62

Access to credit Yes 23 27 8 7 65 48.231***
No 13 23 1 2 39

Study area highland 25 26 4 7 62
Mid-highland 8 14 0 0 22 48.231***
Low land 3 10 5 2 20
De jure 23 33 5 6 67

Response

*** and ** significant at 1 % and 5% respectively.

major urban informal activities in the country
tend to be petty trading, domestic services,
daily labour and prostitution. In the case of
off-farm activities the study has found out that
daily labour, selling of fuel wood are among
major ones.

Dependency Ratio: This variable is
significant at 1 per cent level of probability
for FHH to participate in farm + off-farm
activities keeping other things constant. The
odds ratio of 2.6135 for farm shows, keeping
the influence of other things constant, a unit



Journal of Extension Education5428

increase in dependency ratio, there will
increase in the likelihood of FHH to participate
in farm + off-farm by about 2.6135 to engage
in as livelihood diversification strategies.
Studies conducted by Chant (2010) and
Metasebia (2009) obtained similar a
conclusion.

Number of oxen owned (TOX): This
variable is significant (p<0.5) to influence FHH
decision to participate in farm, and farm +
non-farm and farm + off-farm. It shows FHH
which doesn’t have the required amount of
oxen, is forced to participate in other option
as the chance to engage only in agricultural
activity is curtailed due to lack of oxen as an
asset.

Total Land holding Size (TLH): This
variable has negatively and significantly
influenced the probability of livelihood

diversified into farm + off-farm than
agriculture leaving other things constant.
Large farm size helps FHH to cultivate and
produce more, which in turn increases farm
income and improves livelihood of a
household. The declining land sizes encourage
FHH to diversify their sources of income.
Similarly, studies by Mohammed(2014) and
Degefa(2005) reveal that insufficient arable
land sizes are positively and significantly
associated with participation of rural
households in off-farm and non-farm
activities.

Total Livestock ownership (TLU): This
variable is significant 1% to influence FHH
decision to participate in farm + off-farm. The
odds ratio of 0.348 in farm + off-farm shows
a unit decrease in livestock, will increase the
choice decision of FHH by a factor of 0.348 to

Livelihood Diversification  Strategy of Female-Headed Households
Variables                       Farm                Farm+ non-farm Farm + off-farm

Coef. P-value Marginal effect Coef. P-value  Marginal effect Coef. P-value Marginal effect
TOX 4.917 .008 136.604 3.734 .037 41.853 -4.485 .014 88.668
TLH .388 .365 1.474 -.444 .167 .641 -.892 .050 .410
TLU .112 .632 1.118 -.238 .215 .788 -1.055 .080 .348
CBO 20.620 .000 9.022 18.865 .000 1.559 -1.983 .145 .138
IRG 3.036 .057 20.823 1.075 .399 2.930 -20.174 .000 1.7329
Cred -17.464 .997 2.604 .592 .491 1.808 -3.173 .037 23.884
Fertilizer .636 .720 1.888 -.026 .976 .976 -2.414 .134 .089
Seed -.611 .753 .543 1.952 .055 7.046 2.127 .257 8.932
Chemical .293 .878 1.34 -.768 .396 .464 -.803 .560 .448
Study site 2.768 .060 15.927 -.438 .529 .645 -1.193 .274 .303
DR -14.150 .239 7.154 -.174 .697 .840 12.474 .060 2.6135
No. of obs. 120
Log likelihood - 337.123
LR chi2(57) 276
Prob > chi2 .000
Pseudo R2 .812

Table 3.
Multinomial Logit Model Results of Households’ Choice

of Livelihood Strategies



5429Determinants of Female-headed Households’ Livelihood
Diversification Strategies Choice in Ambo District, Ethiopia

engage more in farm + off-farm than other
livelihood diversification strategies. Metasebia
(2009) concludes in similar manner.

Irrigation Water: This variable is
significant at % probability to influence FHH
decision to participate in farm as
diversification option. The odds ratio of 20.823
for farm indicates that keeping the influence
of other things constant, the likelihood of FHH
to participate in agriculture as livelihood
strategies gets increase by 20.823 for unit
increase access to irrigation. It is consistence
with the finding obtained by Tizita (2013).

Area of the study (agro-ecology): In this
variable statistical result reveals that it is
significant at 1% probability level for
agricultural activities as livelihood strategies.
The odd ratio of 15.927 for farm indicates that
as a unit increase in FHH in number of
potential areas there will be the likelihood of
FHH to take the decision for the participation
in farm increases by a factor of 15.927. This
implies that FHH which are found in relatively
drier and fragile environment will have the
likelihood of participating in last resort
activity. Thus, agro-ecology not only limits the
options available but also pushes to diversify
into low-return and high risk activities.

CONCLUSION

Agriculture is the dominant economic
activity and the primary source of livelihoods
for rural Female-headed households in the
study area. A significant number of FHH
engage in diverse livelihood strategies away
from purely crop and livestock production

towards non-farm and off-farm activities that
are undertaken to broaden and generate
additional income for survival and livelihood
improvement. The result of this study
indicates that low resources endowments were
the main features that characterize FHH of
the poor and this meager resource could not
enable them to generate sufficient livelihood
outcome. To overcome the situation, majority
of them depend on livelihood diversification.
Whether as a result of demand-pull or
distress-push factors livelihood of FHH needs
to be recognized and policy intervention
should concentrate on improving access to
asset within the aim of expanding livelihood
options rather than assuming FHH are
spatially homogenous and individually engage
in one type of activity only. Livelihood behavior
of FHH is diverse due to diversity in livelihood
assets and heterogeneous constraints. Thus,
future interventions need to support that
female-headed households must take into
account diversity in endowment of livelihood
resources and difference in livelihood
strategies.

REFERENCES

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Zone, Ahmara National Regional State.
Doctorial Thesis: Norwegian University of
Science and Technology. Trondheim: NTNU-
trykk.



Journal of Extension Education5430

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