Determinants of urban households in the diversification of livelihood activities: The case of Wolaita zone in southern Ethiopia

Diversification of Livelihood Activities (DLA) is indeed crucial for populous countries like Ethiopia, where it serves as a strategy to mitigate food insecurity. Despite its significance, empirical studies focusing on DLA among urban households in Ethiopia are relatively scarce. Therefore, this study examines factors affecting urban households' participation in the DLA in selected towns of the Wolaita zone. The study used both primary and secondary data. A total of 310 sample respondents from three town administrations in the Wolaita zone: Areka, Boditi, and Sodo, were selected using a multi-phase sampling technique. The study used a survey questionnaire, Key Informant Interviews, Focus Group Discussions, and observations as methods for primary data collection. The collected data was analyzed using descriptive and inferential statistics. The results revealed that among the sampled respondents, 23.9%, 28.4%, and 33.2% depend on on-farm, on-farm + non-farm, non-farm + off-farm activities, respectively, while the remaining 14.5% diversify their livelihood activities through combinations of on-farm + non-farm + off-farm Livelihood Diversification Activities (LDA). The Multinomial Logot (MNL) model result shows that the participation of LDA in the study areas was positively and negatively determined by cooperative membership, development agent training, gender, education, home ownership, rural connections, household income, and technical skills that were found to be statistically significant at 1%, 5%, and 10%. Therefore, the government should prioritize empowering the diversification of livelihood activities and develop policies and programs that support urban households' livelihoods, with a specific focus on promoting off-farm and non-farm endeavors.