Analysis of Vulnerability to Poverty and Income Shocks of Households in Rural Nigeria

Authors(4) :-Adepoju A. A., Ayantoye K., Amao J. O., Akinjobi G. A.

The study looked at the poverty profile of households in rural Nigeria and also their vulnerability to poverty and factors determining vulnerability to poverty. The study used the post harvest and post planting cross section data from the National Living Standard Survey (NLSS) for year 2012. A multi-Stage sampling technique was adopted to select a total of 1020 households for the study. Three stage feasible generalized least square (3FGLS) estimation procedure was used to analyze the vulnerability to poverty and to model the effect of household socio-economic status on expected future consumption and variation in future consumption while Tobit model was used to examine the determinants of vulnerability to poverty and VEP. The result revealed that 58 percent of the rural household in the study area are poor, and the intensity of poverty was 30.1 percent, which was high for the study area was high. Severity of poverty was recorded as 18.4 percent, an indication for income inequality among the poor. The result further revealed that age squared (P = 0.01), sex (P = 0.10), covariate shocks (P = 0.10) and farm size (P = 0.05) were positively significant in ex ante mean consumption while age (P = 0.01), married respondents (P = 0.10), and years of schooling (P = 0.05) were negatively significant in ex ante mean consumption. The shocks variables experienced by households in the study area were natural/agricultural; economic; political/social/legal; and demographic/life-cycle shocks that inflict welfare loss. The findings suggest that poverty and vulnerability to poverty are independent concepts. It is recommended that policies concerning poverty reduction should consider households that are currently non-poor but are vulnerable to poverty along with poor households. Rural households should also be encouraged to engage in more off-farm activities and value addition of their produces.

Authors and Affiliations

Adepoju A. A.
Department of Animal Production and Health, Ladoke Akintola University of Technology, P.M.B. 4000, Ogbomoso, Nigeria
Ayantoye K.
Department of Animal Production and Health, Ladoke Akintola University of Technology, P.M.B. 4000, Ogbomoso, Nigeria
Amao J. O.
Department of Animal Production and Health, Ladoke Akintola University of Technology, P.M.B. 4000, Ogbomoso, Nigeria
Akinjobi G. A.
Department of Animal Production and Health, Ladoke Akintola University of Technology, P.M.B. 4000, Ogbomoso, Nigeria

Vulnerability, Poverty, Household, Household Resilience, Ex-Ante.

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Publication Details

Published in : Volume 6 | Issue 4 | July-August 2019
Date of Publication : 2019-08-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 377-390
Manuscript Number : IJSRST19668
Publisher : Technoscience Academy

Print ISSN : 2395-6011, Online ISSN : 2395-602X

Cite This Article :

Adepoju A. A., Ayantoye K., Amao J. O., Akinjobi G. A., " Analysis of Vulnerability to Poverty and Income Shocks of Households in Rural Nigeria", International Journal of Scientific Research in Science and Technology(IJSRST), Print ISSN : 2395-6011, Online ISSN : 2395-602X, Volume 6, Issue 4, pp.377-390, July-August-2019. Available at doi : https://doi.org/10.32628/IJSRST19668    
Journal URL : https://ijsrst.com/IJSRST19668
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