Abstract:
The objective of this study is to analyze poverty and income inequality and it‟s determinants in
Jimma Rare Woreda Town. Primary data was collected a total of 362 household heads, from
three kebelles, were selected to undertake the research and a proportionate stratified sampling
technique was employed and from each kebele‟s registry-frame, households were selected using
systematic random sampling. A logistic regression model was employed to determine the factors
influencing poverty in Jimma Rare, with the probability of a household being poor used as a
dependent variable and a set of demographic and socioeconomic variables as the explanatory
variables. By making use of Cost of Basic Needs (CBN) approach, birr 3021 was computed as
total poverty line per adult equivalent per month and, based on this bench mark, households
were identified as poor and non-poor. Based on this, there was a poverty incidence of 63.2
percent with income short fall of 32.1 percent and poverty severity index of 11.9 percent. Income
inequality, as measured by Gini coefficient in Jimma Rare Woreda Town was 0.36 and kebeles
wise with high inequality Wayu (0.38) followed by Hunde Jiregna Babala (0.37) and 0.36 was
observed by Goban. Due to the prevalence of poverty and income disparity, immediate action is
required to address the issues facing the populace. This action should focus on providing social
services, empowering women, providing market-based short-term training, and providing job
possibilitie
