The Determinants of Livelihood Diversification Strategies in Qecha Bira Woreda, Kambata Tambaro Zone, Southern Ethiopia

Rural households engage in to livelihood diversification activities to ensure their food needs. The livelihood diversification is determined by different factors. This study investigated the determinants of these strategies in Qecha Birra woreda. Multistage sampling technique was employed to select 355 household heads of study area. The descriptive statistics result indicated that majority of the rural households (41.6%) engaged into on farm activity. However, the rest 22.54%, 21.41% and 14.37% combine on farm with off farm, non-farm and off farm plus non-farm livelihood activities respectively. This shows that agriculture is still dominant livelihood activity in the study area. Multinomial logistic regression model result demonstrated sex of the household heads, age, education status, training, and extension service, credit access, livestock ownership and market access are found to be significant determinants of the diversification. Therefore due attention should be given to strengthen livelihood diversification strategies so as to improve food security. Keywords: Livelihood, Diversification, Determinants, multinomial Logit model, Food security DOI: 10.7176/JESD/10-9-02 Publication date:May 31st 201

Tax evasion attitude and taxpayers’ perception of government legitimacy: evidence from Southern Ethiopia

Tax evasion, a global concern, undermines government revenue, public services, and societal trust. It occurs when taxpayers deliberately avoid their tax obligations. This study primarily explores the link between government legitimacy and tax evasion decisions in Ethiopia. Aside from bridging the knowledge gap in tax evasion, the findings are instrumental for policymakers to develop more effective approaches to tax collection and promote a culture of voluntary tax compliance in Ethiopia. Using survey data from 768 respondents across five administrative zones in Southern Ethiopia. The research examines how taxpayers’ perceptions of government legitimacy influence their attitudes toward tax evasion. Methodologically, the study employed one-way ANOVA and a logistic regression model to analyze the collected data. The findings reveal a significant negative association between government legitimacy and tax evasion. Taxpayers who view the government as legitimate are less likely to consider evasion. However, other factors also play a role. The study identifies age, perceived corruption, penalty severity, and tax system complexity as positively influencing tax evasion attitudes, while education level has a negative effect. Based on these findings, the study recommends strategies to improve government legitimacy and strengthen tax compliance. these include promoting accountable and transparent governance, enhancing public service delivery, simplifying the tax system, increasing penalties for evasion, and tackling corruption. By addressing these aspects, Ethiopia can foster trust in institutions and ultimately reduce tax evasion

The urban informal sector as a means of livelihood improvement among youth: Evidence from Hawassa city, Ethiopia

AbstractThe informal sector constitutes a vital part of developing countries’ economy. It serves as a major source of employment and livelihood for the urban poor. However, despite its multifaceted economic contributions in many developing countries, little is known about its contribution. Hence, this study examines the role of the urban informal sector in improving the livelihoods of the participants in Hawassa city, southern Ethiopia, using primary data. A random sample of 182 informal sector participants was selected from eight kebeles using multi-stage sampling techniques. Descriptive statistics and a logistic regression model were used to analyze the data. The descriptive analysis results showed that the majority of the participants (67%) perceived that participating in the informal sector has considerably improved their livelihood. The econometric analysis reveals that informal business operators who earn a higher monthly income, those who save their income, stayed longer in the business, have access to credit and own more working capital, and those who get training opportunities are observed to have better livelihood improvement compared to their comparative group. Given the sector’s role in creating employment opportunities for the burgeoning urban labor force and improving livelihood, informal businesses should not be treated as a hostile group with a marginal role in the economy. Thus, along with designing strategies for the formalization of informal enterprises, facilitating access to finance, training programs, improving the business environment, and provision of business development services prepare youth to navigate the informal sector in the study area, in particular, and Ethiopia, in general