Abstract:
Majority of smallholder farmers in Ethiopia pursue a dominant livelihood strategy mostly
complemented by a second less dominant livelihood strategy. Choice of livelihood strategies is
mostly constrained by shrinking natural capitals and adverse changes in climatic conditions
that affects the outcomes from the adopted livelihood choices. In the face of such changes,
comprehending the driving factors for the choice of current livelihood strategy is crucial to
having objective information on rural livelihoods to make an informed approach in planning
and executing rural livelihood policies. This study aims to empirically measure factors
affecting choice of livelihoods strategies in Boset Woreda. Household level cross sectional
data in production year 206/17 were collected from 200 randomly selected respondents. Data
was collected using structured questionnaire, key informant interview and focus group
discussion. Descriptive statistics and econometric model (Multivariate probit model) were
used to analyze the factors that determine household’s choice of livelihood strategy. The
study found out that crop farming and Livestock rearing livelihood strategies are the most
widely pursued livelihood strategies in the study area. The multivariate probit model found
out that out of the 12 explanatory variables used for the study: Age of household head,
farmland size and credit access have positively influenced households choice of crop farming
livelihood strategy, while land size, age of household head and input use has negatively
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influenced households decision to pursue non-agriculture livelihood strategies. The study also
found out that the share of non-agriculture livelihood strategy among surveyed households
comprises 39% of the livelihood choice by the respondents reporting to follow a wide range of
off farm and non-farm income sources.