The influence of household size on socioeconomic conditions of rural farm households in Damot Woyde District, Wolaita Zone, Southern Ethiopia

Abstract

There is little debate about the relationship between rising fertility and declining income. Rapid population growth can have serious implications for people’s standard of living—their incomes, savings, health, education, and general well-being. Thus, the objective of this study is to analyze the impacts of household sizes on rural farm households’ savings, consumption spending, and financial capacity to cover the expenses of children’s education and the health of household members. 346 rural farm household heads took part in the study, which used a multistage sample technique. Along with the survey results, six focus group discussions, 27 key informant interviews, and personal observations were done. The outcomes showed that the savings-to-income ratios of rural households decreased with increasing household size, whereas consumption-to-income ratios increased due to a portion of the income that was not saved being spent on supporting the consumption demands of the additional household member. The MANOVA post hoc analysis also revealed that the large household size group’s average yearly savings were significantly lower than the small household size group, whereas consumption expenses grew with increasing household size. Furthermore, ordinal logistic regressions show that increasing household size without increasing income diminishes rural farm households’ existing financial capacity to afford the expenditures of their children’s education and healthcare for household members. Thus, it is preferable to advocate that rural households have access to quality reproductive health-care services, like safe and effective family planning alternatives, and that households strive to diversify their income sources to promote savings.

Keywords

• Household size
• savings
• consumption costs
• rural households
• Damot Woyde
• Michael Hardman, University of Salford, Salford, UK