RIFT VALLEY UNIVERSITY BURAYU CAMPUS

FACULTY OF BUSINESS AND SOCIAL SCIENCES

DEPARTEMENT OF ECONOMICS
EFFECTS OF HOUSEHOLD SIZE ON HOUSEHOLD INCOME AND ITS
DISTRIBUTION THE CASE OF BURAYU TOWN

A RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF ECONOMICS

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF
BACHELOR OF ART IN ECONOMICS.

PREPARED BY ID.No
1. GUTEMA KEBEDA……………………………………….….…0120/13
2. DIRIBA CHALA………………………………………...…….…0054/13
3. HABTAMU ABABE……………………………………….….…0029/13
4. GADISE BIRHANU…………………………………………...…0063/13
5. AYANTU WORKU…………………………………………....…0028/13

ADVISOR:
FANTA WAYESA (MSc)

MAY, 2024
BURAYU, OROMIA
DECLARATION
We, declare that the project entitled “Effects of Household Size on Household Income and Its
Distribution the Case of Burayu Town” Is Our Original work and has not been presented for a
degree in any other university and that all sources of material used for the project have been duly
acknowledged and We have made it independently with the close advice and guidance of our
advisor Mr. Fanta Wayesa (MSc)

Student Name ID.No Signature Date

1. Gutema Kebeda……………….………0120/13 ____________ ____________
2. Diriba Chala…………………………..0054/13 ____________ _____________
3. Habtamu Ababe……………………….0029/13 ____________ ______________
4. Gadise Birhanu……………………….0063/13 ____________ ______________
5. Ayantu Worku………………………..0028/13 ____________ ______________

APPROVAL SHEET

This is to certify that the research paper prepared by Gutema Kebede, Diriba Chala, Habtamu
Ababe, Gadise Birhanu and Ayantu Worku entitled on the ‘‘Effects of Household Size on
Household Income and Its Distribution the Case of Burayu Town” Submitted in Partial Fulfillment
of the requirement for the Degree of Bachelor of Arts (BA) in Economics complies with the
regulations and meets the accepted standards with respect to originally and quality.

Name of Advisor Signature Date

___________________________ ______________ _______________

Name of Examiner Signature Date

___________________________ ______________ _______________

I
 TABLE OF CONTENTS
DECLARATION ............................................................................................................................ I

ACKNOWLEDGEMENT ............................................................................................................V

ACRONYMS AND ABBREVIATION ..................................................................................... VI

ABSTRACT ................................................................................................................................. VII

LIST OF TABLES ....................................................................................................................VIII

CHAPTER ONE ........................................................................................................................... 1

INTRODUCTION ......................................................................................................................... 1

1.1 Back ground of the study ...................................................................................................... 1

1.2 Statement of the problem ...................................................................................................... 2

1.3 Research Question................................................................................................................. 2

`1.4 objective of the study ........................................................................................................... 3

1.4.1 General objective ........................................................................................................... 3

1.4.2 Specific objectives ......................................................................................................... 3

1.5. Significance of the study ...................................................................................................... 3

1.6 Scope of the study ................................................................................................................. 3

1.7 Limitation of the study .......................................................................................................... 3

1.8 Organization of the paper ...................................................................................................... 4

CHAPTER TWO .......................................................................................................................... 5

REVIEW OF RELATED LITERATURE .................................................................................. 5

2.1 Theoretical literature review ................................................................................................. 5

2.2 Sources of household income ............................................................................................... 5

2.2.1 Population and Development ......................................................................................... 6

2.2.3 Population and education ............................................................................................... 6

2.2.4 Population and health ..................................................................................................... 6

2.2.5 Population and employment........................................................................................... 7

II
 2.2.6 Household and food security.......................................................................................... 7

2.2.7 Household income distribution ...................................................................................... 7

2.2.8 Other cause of income inequality................................................................................... 8

2.2.9 Indicators of inequality .................................................................................................. 9

2.2.10 Impact of income inequality ........................................................................................ 9

2.3 Empirical literature reviews ................................................................................................ 10

CHAPTER THREE .................................................................................................................... 11

DESIGN AND RESEARCH METHODOLOGY .................................................................... 11

3.1 Description of the study area .............................................................................................. 11

3.2. Types and source of data .................................................................................................... 12

3.3 Method of data collection ................................................................................................... 12

3.4 Research Design .................................................................................................................. 12

3.5 The sampling techniques and sample size .......................................................................... 12

3.6 Method of data analysis ...................................................................................................... 13

CHAPTER FOUR ....................................................................................................................... 14

DATA ANALYISIS AND PRESENTATIONS ........................................................................ 14

4.1 Demographic characteristics of respondents ....................................................................... 14

4.2 Personal information about respondents ............................................................................. 15

4.3 Household size and education ............................................................................................. 16

4.4 Household size and health................................................................................................... 17

4.5 Activity diversification ....................................................................................................... 17

4.6 Additional job activity ........................................................................................................ 18

4.7 Income consumption ........................................................................................................... 18

4.8 Household income inequality.............................................................................................. 19

4.9 Measuring income inequality .............................................................................................. 19

III
CHAPTER FIVE......................................................................................................................... 20

CONCLUTION AND RECOMMENDATIONS...................................................................... 20

5.1 Conclusion .......................................................................................................................... 20

5.2 Recommendation ................................................................................................................ 20

REFERENCE .............................................................................................................................. 21

APPENDIX .................................................................................................................................. 22

IV
ACKNOWLEDGEMENT

First and for most, we would like to thank the almightily “God” who help us by every direction.
Secondly we would like to reward our deepest gratitude to our Advisor Mr. Fanta Wayesa who
has provided his wise and intellectual advice, guidance and directive to make this research
proposal. Third, our appreciation goes to Rift Valley University Burayu Campus of Business
and Social Sciences for giving us this chance to prepare a Research paper on Economics for the
course research proposal. At last but not least we are also appreciating all Social Worker of Rift
Valley University Burayu Campus for their valuable support in every aspect.

V
ACRONYMS AND ABBREVIATION
CSA: Central statistical agency
C: = Degree centigrade
DCS: Developed countries
FAO: food and agricultural organization
GDP: Gross domestic product
HH: Households
KM: Kilometers
LDCS: Least development countries
MM: Millimeter
NLFS: National labor force survey
NOP: National office and population

VI
ABSTRACT
The impact of population growth on development is not inherently positive or negative. When rapid
economic technological advances accompany it, population growth actually contributes to
national development. A research was conducted having tittle effects of household size on
household income and its distribution in case study of Burayu town. To know the main factors
affect fertility rate of the households the study used a survey design were both primary and
secondary data were collected by distribution of questionnaire to sample population. The sampling
technique used by researchers was two stages stratified sampling technique where each
respondent was selected using simple random sampling method. As the study shows the motives
behind having a large numbers of family size are for age security, boost pressure and social
importance in culture. Besides these lack of family planning is one of the problems contributed to
high fertility rate.
1

1 Key word:-household income,distribution,household size, Burayu town

VII
LIST OF TABLES
Table 1. Respondents (household head) sex and age. .................................................................................................. 14
Table 2. Educational level of respondents. .................................................................................................................. 14
Table 3 .Age category of households’ members of respondents. ................................................................................ 15
Table 4 Social-economic factors affecting. ................................................................................................................. 16
Table 5 Ability of households to educate their children. ............................................................................................. 16
Table 6 Activity diversification ................................................................................................................................... 17
Table 7 Additional job activity .................................................................................................................................... 18
Table 8 Income consumption....................................................................................................................................... 18
Table 9 Annual household income and household. ..................................................................................................... 19

VIII
 CHAPTER ONE
INTRODUCTION
1.1 Back ground of the study
Population growth is the most important set of events to occur in human history. It has changed
and continues to the alter the way of life even in the most remote corners of the earth. The number
of world’s population increased, every day that is never previously existed or occurred in history
and unparalleled in its consequences. When rapid economic growth and technological advances
accompany it, the problems can be minimized. The rate of growth of population is a ranged
between countries in the world. LDCs are characterized by high rate of population growth (Todaro,
2023). The world’s population of just 6billion people in 2000 more than of five-sixths lives in
LDCs and less than one-sixth live in DCs (Todaro, 2023 E.C).

The population of Ethiopia is also vulnerable to what faces other developing countries. The social
infrastructure and agricultural lands are unable to support the growth of population. As a result,
the societies remain strapped in the vicious circle of poverty, disease and hunger. One of the
strategies in to achieve food security and sustainable development, and building raise form of
development. From the study of human development features, the country has high rate of
population growth about 2.7% fertility rate (NOP, 2021).In Ethiopia, some family planning
activities have been started but need a lot of work in attain the desired goals such as education,
food security, balanced income, and standardized level of life.

The main reasons which severe household’s family planning at regional levels should be identified,
some policy implicational and appropriate decision to overcome the rapid growth of population
should also be considered, and other related problems in the study was considered.
The distribution of household’s income is not even in every corner of the world. However, the
degree of inequality differs across countries. It aggravated or became most wide from time to time.
In general countries with high income gap have under gone extend civil strife and set back
development progress. This inequality of income also exists across households with in country.
This implies that household size partly determine its distribution between households (Todaro,
2023 E.C).

1
1.2 Statement of the problem
Ethiopia is one of the developing nations the world which is rapidly economic growth. Major
factors with have held back the pace of development in many countries as well as Ethiopia stand
out with particular starkness. One of these is the low status and role of women which held women
back from full participation development (Abebe B, 2020).Developing countries are characterized
by low income level and highly skewed distribution of income. No country of the world is free
from uneven distribution of income. However, the natural and degree of its distribution differs.
This means that greater in equality is existing in LDCs than DCs.
At a national level, the magnitude and extent of poverty in any country depend on two factors.
These factors are the average level of national income and the degree of in equality in its
distribution (Todaro, 2015 E.C). These two factors determine the magnitude and extent of hard
ship in any nation of the world. The distribution of total personal income among all nations is
extremely unequal in many countries, government redistributes top low income group and the level
through transfer payments financed by taxes (Todaro, 2014 E.C).
In fact, aggregate growth is probably the factors affecting the individual level of income. It also
ensured that better living standard of an individual or household differ based on the size. This, in
another way, paves the way for income inequality across households.
The fast growth rate of population has been facing by different socio-economic problem. Among
such problems effect of household’s size on their income and its distribution is one. Thus my study
would design to asses’ whether those and other effect of household size on household income and
its distribution in case of Burayu town and how the problem could be handle to upgrade its activity
in the woreda. So, this study will answer questions regarding effects of household size on
households’ income and its distribution.
1.3 Research Question
1. What are the causes for the household’s being large?
2. What are the roles of household’s member in each household?
3. What effect does household size have on household income distribution?
4. What are the possible solutions to tackle income problems of household?

2
`1.4 objective of the study
1.4.1 General objective
The general objective of the study to assess the effects of household size on households’ income
and its distribution in case of Burayu town
1.4.2 Specific objectives
The specific objectives of the study are
1. To analyze the causes of large family size and its distribution.
2. To analyze the role of house hold members in each house hold
3. To analyze the extent of large income inequality
4. To analyze the possible solutions to tackles income problem of house hold.
1.5. Significance of the study
This study will provide some important information about the effect of household size on house
hold income. The study reviewed the main Couse and problem of household size on household
income in country particularly in Burayu town. This will help to suggest the appropriate
recommendation and help in improving general ideas and information from individual and
officials. It use as a reference materials for student who are going to undertake a research in
economics.
1.6 Scope of the study
The study focused on setting the appropriate information regarding household’s income and its
distribution. That is, the study asses the income and its distribution at a household level. It also
limited to analysis the effects of household size on their income and its distribution in burayu town.
The study was used primary data.
1.7 Limitation of the study
This study has different limitation. Among those, time constraint was one. The next one is financial
constraints that arise from in sufficient money to undertake the study on time and expenditure
accompanied with data collection. In spite of the above constraints much effort and work was made
to minimize those constraints to undertake the study in an appropriated.

3
1.8 Organization of the paper

The paper was organized in five (5) chapters. The first chapter is introduction which contains
background, statement of the problem of study, significance of the study, scope of the study,
limitation of the study, and organization of paper. The second chapter deals with reviews of related
literature. The third chapter deals with methodology and data source as well as description of the
study area. The fourth chapter deals with data analysis and findings while the fifth chapter deals
with conclusion of the study, and recommendation.

4
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Theoretical literature review
Many different authors and economists defined household as all people who occupy a housing unit.
According to us census bureau, it is defined as a house, an apartment or other group of rooms, or
a single room, is regarding a housing unit when it is occupied or intended for occupancy as a
separate living quarters, that is when the occupants don’t live with any persons in the structure and
there is direct access from outside or through a common hall. It includes related family members,
and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share
the housing unit. A person living all one in housing unit, or a group of unrelated people sharing a
housing unit such as partners or roomers are also counted a household(Todaro, 2019).
Household income is measure of combined incomes of all people sharing housing unit or place of
residence. It includes every form of incomes, for example, salaries and wages, retirement income,
near cash government transfers like food stamps and investment gains. Average household income
need not map directly to measure of individual earnings such as per capital income as numbers of
peoples sharing households as numbers of income earners per household can vary significantly
between regions and over time (Abebe B, 2022).
One the other hand household income can be defined all the sum of money income and income in
kind and consists of receipts which as a rule, are of recurring nature and accrue to the household
or individual numbers of the household regularly at annual or at more frequent intervals.
Household size is a number of persons usually living in the household including boarders of
servants. In other way, it is essentially the number of persons living together of for whom you are
financially responsible.
2.2 Sources of household income
Economists divide income in to earned income and unearned income based on its source. Earned
income consists of chiefly, wages and salaries which are received in turn for labor. Wage generally
paid according to numbers of hours worked for amount of labor while salaries are payments that
remains fixed for certain period such as month. Earned income also consists of income from self-
employments, business profits and income from personal investments such as rent and interests.

5
2.2.1 Population and Development
Population is a complex issue in addressing and requiring the knowledge of many factors
influencing it. Moreover, relating population issue to poverty and development requires a good
understanding of their interrelations. These complicated interrelations could be better to
understand when looked at on the following frame works.
2.2.3 Population and education
Social service provision is the fore front of the policy debate as far as the relationship between
population growth and economic development is concerned. Education is essential for satisfying
and rewarding life (Todaro, 2023). At the same time, it plays the key role in the ability of
developing countries to absorb modern technology and to develop the capacity for sustaining
growth and develop the education invested in today’s children believed to determine the human
capital skill of tomorrow’s labor force there by productivity (NOP, 2021).
The long-run effect of education is that better educated parents themselves likely to have fewer
children regarding to enhanced prospect for good health and survivals as result of awareness about
and use of family planning. On the country, the higher the fertility and birth rates which are the
courses for high population growth rate at national level. The lower the capacity of family to spend
on children’s education, such as family will be forced to go illiterate or will not get for with their
education (NOP, 2021).
2.2.4 Population and health
Similar to the above frame work, health care activities are highly effected by population pressure,
high fertility rate together with rapidly growing population also affect the household health status
and the ability of household to access health as well (NOP, 2021). In addition, rapid population
growth has on impact on the ability to provide health by reducing precipitation government
spending on health service. In countries like Ethiopia they cannot often pay medical treatment and
it is government in almost all developing counties to provide free services (Nigatu, 2021; FAO
1994). High fertility and lack of child care spacing compromise the health of mother and reduce
maternal child care. This in turn results in high morbidity rate of mother and children. Achieving
the largest set in health service provision enable took lower mortality rate of all infants.

6
Mother when try took raise large family will still became fired and weak and may die leaving
children and husbands to struggle alone (Abebe; 2020).It eventually, diverts attention from
engaging in productive activities resulting in reducing productivity.

Moreover, health is prerequisite for increases in productivity, while adequate health determines
successful education (Todaro, 2023). Their deal role as both inputs gives them their central
importance in economic development of any county.

2.2.5 Population and employment

Looking at the issue from the employment perspective, it can easily be noted that rapid population
growth includes high dependency ratio lowering the number of economically active population
estimated 2.2 million people were unemployed in Ethiopia (NLFS, 2021). This puts urban
unemployment rate at 25.7%. As the capacity of the economy cannot absorb the increasing number
of people joining the productive age group; with the rapid increasing easing population, it is likely
that unemployment will remain an increasing problem (NOP, 2021).
2.2.6 Household and food security
Household food security is understood as accesses to adequate food in quantity and quality, to
fulfill all nutritional requirements for all members of the households throughout the year (forum
for social studies, 2023). However, at the household level there is often a short fall in the level of
production which should not compromise household food security because acceptable food is
available with its reasonable distance to household and there is adequate income to purchase it.
2.2.7 Household income distribution
The distribution of income among the nations of the world is extremely unequal. This uneven
distribution of income is not only at a household level but also varies among individuals in the
household. Personal income inequality between individuals in the household may fail to explain
the level of inequality at the household level. There are large disparities between income of the
rich and poor in both developing and developed countries (Todaro, 2023). Nevertheless, the gap
between rich and poor is generally greater in developing countries than developed countries. This
indicates that as the degree of hardship vary with in household. So, this variation between
households is not limited to household size but also other factors are there to contribute for this
difference.

7
2.2.8 Other cause of income inequality
A) System in heritance
The accumulation of rich person passes to their heirs by the system of in heritance. The heirs are
able to enjoy income or property without doing any work. Thus, in heritance has largely been
responsible for the emergence of leisure class whose members live in idleness and luxury without
contributing productive services to the nation.
B) Differences in ability
People have different natural qualities and talents. Some are more gifted than other persons who
are endowed by nature with special qualities, better physical building and greater capacity for hard
working than the other. This is also one of the reasons of income inequality.
C) Educational difference
At it is known, occupation through education is one major source of income. This means individual
with higher education qualification earn more than with lower or no qualification (Pearson;
Addison, 2020).
D) Difference in economic opportunities
Different individuals perform different types of jobs, they get salaries and wages. Generally wages
of labor class may be less than the salaries of skilled labor. The environment is important factor in
which people are born. They offered unequal advantage by environment in which they are placed
those born in well to do get favorable short in life through good education, better training and
social contact while those who born in poorer families may not have this advantage (Todaro, 2023).
E) Poverty
One of the basic causes for unequal distribution of income is poverty which is expressed in low
consumption levels, low per capital income and low standard of living (Jhingan, 2019).
F) Inequitable distribution of means of production
Inequality of income results from inequitable distribution of means of production (Jhihgan, 2019).
One of the means of production is capital people being poor, capital is scarce in LDCs. But it is
concentrated in the hands of rich who use in to their advantage.
G) Low productivity
Low productivity per unit of labor is also another factor for uneven distribution of income low
productivity keeps the income level of the people low. A worker with low productivity cannot earn
more and thus remain poor. And the gap between rich and continues to wide because the rich have
been able to increase their incomes continuously) Exploitation Unorganized, illiterate and poor

8
workers are generally exploited by the capitalist order and business men usually earn large profit
at the cost of the poor who are not paid a living wage. Consequently, inequalities tend to be
perpetuated (Campbell, S/L Brue, 2019).
I) Unemployment and underemployment
One of the prominent reason for unequal distribution of income is wide spread unemployment and
underemployment. Inequitable distribution of factors (means) of production is one factor that leads
to increasing unemployment and underemployment. As a result, the poor are becoming poorer
(Jhingan, 2019).
2.2.9 Indicators of inequality
There are many possible measures of equality (inequality) in the size distribution of income. The
most simple is taking a percentage of total income class (example, the bottom in 20% of course
the higher the share of high income class and lower the share of low income class, and the greater
the inequality. Another measure may be ration at the group. Both measures are easy to, understand
and calculate. However, they are subject to short coming such as partial use of information
pertaining only to the top and the bottom groups and arbitrariness in demarcation of income
classes.
2.2.10 Impact of income inequality
How bad is inequality? No civilized people can feel satisfied with a state of affairs in which their
follow human exist in condition of absolute human misery, which is probably why every major
religion has emphasized the importance of working to alleviate poverty and is at least one of the
reasons why international development assistance has the universal assistance for every
democratic nation. But it may reasonably be asked, if our top priority is the alleviation of absolute
poverty, why should relative inequality be a concern? The reasons to be concerned with
inequalities of among those above the poverty line are: First, extreme income inequality leads to
economic in efficiency.
This party because any given average income, for a loan or other source of accredit. Moreover,
with high inequality, because the highest rate marginal saving in found among the middle classes
(Todaro, 2023). Further, in equality may lead to an efficient allocation resource. High inequality
leads to an over emphasis on higher education at the exposes of equality universal primary
education and this in turn begets still more inequality income.

9
Those above the poverty line are that extreme income disparities undermined social stability and
solidarity. Worse, high inequality strong tens the political power of the rich, as well as their
economic bargaining power. Usually, this power will be used to in encourage outcomes favorable
to themselves (Todaro, 2023).
The third and final reason is that inequality is generally as unfair. The eminent phosphor john
Rawls proposed a thought experiment to help clarity is this so that is you might be born as still
creates, with equal probability.
2.3 Empirical literature reviews
Empirical studies of effects of household’s size income and its distributions shows that household
size negatively effects household income. This means that increase in family members lead to
reduction of income and brought the people to the brink of the poverty line. It also show that its
distribution across the households maybe varied due to size of households. It has been concluded
that increase in household size lead to reduction of households income which in turn leads to
income inequality between small and large household size mill anodic (2019) derives measure of
distribution for 1988 and 1993 on household survey data for 91 countries, covering 84% of the
world GDP. Mill concluded that the nature of distribution of income, therefore, is central to any
analysis of poverty problems in low income countries Dollar and royal (200) examines the
relationship between growth and income distribution across 80 countries over 40 years. They find
the income of the poor (bottom 20% of the population) raise one to one with overall growth with
and the relation is no difference in poor countries than rich one.

10
 CHAPTER THREE
DESIGN AND RESEARCH METHODOLOGY
3.1 Description of the study area
The study is conducted in Oromia regional state of Burayu Town Burayu is one of the cities found
in Oromia Regional State in Ethiopia. The city is found 10km far from Finfine (Addis Ababa) the
capital of Oromia Regional state, Ethiopia, and Africa, on the main road from Finfinne-Ambo-
Nekemte-Asosa on the west ward. It is a major living area for nations, nationalities and peoples. It
is divided into six (6) kebeles. These kebeles are: Gafarsa Burayu, Lakku Katta, Malka Gafarsa,
Gafarsa Nonno, Gafarsa Gujjee and Burayu Kata. Burayu shared border with different cities and
woredas. On the west direction, Walmara woredas, Sululta city from North, on the South Sabbata
Hawas woreda, and Finfinnee from East. The total area of the city was 9057 hectares. However,
the number of population is increasing dramatically. In the year 1977 only 4138 people lived in
the area. But, in the 2021 this number increased dramatically to 63,873. Now more than 334,797
peoples live in the city (Burayu Communication affairs Bureau, 2019).This Oromia Special zone
is located in western part of Ethiopia which is demarked by administrative boundary from the
capital city of Ethiopia, Addis Ababa. Burayu, Oromia Before people settled in Burayu, the place
was covered by big forest. As the number of people increased they expanded to find the farm land,
the forest was cleaned.
Burayu was founded in 1946 by the land lord and governor of the area Girazmach Roobii Kallacha.
In the late 18th c Burayu and the area was conquered by Oromo Tulama called Gosa Gulale
(Gulalae Clan). The clan formed the system called Gada system around the area called Qachare to
rule themselves (Burayu Communication Bureau, 2019). The name “Buraayuu” named from the
black tree called “Burayu” found in that area in the ancient time. Traders come to Finfinee (Addis
Ababa) from Wallaga, Jibaat, Gindabarat, and Mugar to take rest and meet each other under this
black tree (ibid). According to the information from Burayu Communication affairs Bureau (2019)
the Institutions in the city include: Number of government sections 31, Number of non-government
sections 9, Number of Federal government sections 16, Number of oil centers 6. The Populations
size, density and distribution of Burayu city is that the Number of total population: Male=199,013
and Female 176,336, grand total is 375,349. Density: in one karee meter square 0.011 peoples
living and the

11
Number of peoples by religions: Orthodox=35%, Muslim=25 %, Waqefata=4%, Protestant=36%
according to data obtained from Burayu Communication affairs Bureau (2019)Burayu city is found
2450-2600 above sea levels. The city has two historical places: Anfoo and IrreechaMalkaAtete
and five (5) tourist sites including these two historical places, Gafarsa Dam, Dire Gujee,
GaliimaAnfoo and Kolobo forest (ibid). Regarding the peace and security of the society in city
was given priority first for peace and supporting the peace keeping by their power, wealth and
money. Different social class: Qerro`s, Aba Gada`s, Elders, religion fathers, women’s, and
investors are working together when any peace and security problem happened in the city. Also,
the city was a village for different youth came from different Oromia zones, which make the city
to have high number of youth more than city capacity. As these youth are unemployed, it was very
dangerous for security. / has a latitude and longitude of 8°9'N35°31 'E and an elevation of 2085
meters. This town has an estimated total population of 36,563 of whom 1 8,837 are men and 1
7,726 are women; 23.97% of its population are urban dwellers and 76.023% are rural dwellers. In
this town there are 1 3469 house hold. Burayu is known for its factory. During the 1 960s,
experimental factor were started around in Burayu e1 960s.
3.2. Types and source of data
In order to achieve the objective of the study the research approach used both primary and
secondary data. Primary data was gathered through questionnaires prepared and distributed to
informants, Secondary data were collected from documents, existing research papers, and, Burayu
town reports and other relevant documents.
3.3 Method of data collection
For the achievement of the objective of the study, among different data collection methods primary
data collection method through questionnaire were used. The other is from preparing
questionnaires and distributing it’s to selected respondent from the study areas.
3.4 Research Design
Research used survey type of the research which would more of descriptive of phenomena and
identify information on problem. Therefore both qualitative and quantitative form of data was
collected.
3.5 The sampling techniques and sample size
Since Burayu Town. Six kebele.based on this information the researcher selected two kebele based
on applying method of stratified sampling techniques because their areas was different condition.

12
The study used stratified sampling techniques because the method is more representative of the
true population and easily improved. The researcher used 60 sample size from randomly two
kebeles Burayu Gefersa and Burayu keta.The total population of two Kebele were 2140 from the
first kebele 1080 and second 1060 respectively. Strata formula n =sample size

Ni= Total population of each Kebele

N= Total population of the Kebele n = n (Ni)/N

Burayu Gefersa Kebele

1080/2140*60 =30
Burayu Keta
1060/2140*60=29
Total sample size or n =n1+n2
N= 30+29 =59
3.6 Method of data analysis
The collected data were changed and interpreted in to meaningful information, figure and
statement, so it was analyzed, processed, interpreted according the nature of data. Statistical
package for social science (SPSS) was used to analysis and interpret the data through the statically
tools used for this structures.

13
 CHAPTER FOUR
DATA ANALYISIS AND PRESENTATIONS
4.1 Demographic characteristics of respondents
Table 1. Respondents (household head) sex and age.
Sex of HH % Sex Age
Frequency

18-24 % 25-35 % >35 %

Male 45 75 Male 6 54.5 16 76.2 23 82.1

Female 15 25 Female 5 45.5 5 23.8 5 17.9

Total 60 100 total 11 100 21 100 28 100

Source: own survey, 2023

.From the table 1; among the sample population 75% were male headed households and the
remaining 25% were female headed households.
When we see the age distribution about half of the respondents are in the age bracket greater than
35 years. When we see each age category 18.3% of the respondents are in between 18 and 24 years
where as the remaining 35% and 46.7% were in between 25-35 and greater than 35 respectively.
Table 2. Educational level of respondents.

Level of Education Frequency Percent

1-5 4 6.7

6-10 13 21.7

11-12 11 18.3

Certificate 13 21.7

Diploma 10 16.7

Degree and above 9 15

14
 Total 60 100

Source: own survey, 2023.

Regarding the educational level of respondents 6.7% of the respondents have learned grades 1-5.
21.7% of them have learned grades 6-10. From the table we can see that large percentage of the
respondent have got primary education. On the other hand as the level of education in case, the
number of people who got successive education (Grade) decrease.
4.2 Personal information about respondents
As most literate indicated that the ever increasing of countries population is mainly determined by
high fertility rate which in turn is affected by young age structure and socio-economic factors of
the society. The same is true for the households in the study area Burayu town. Most of the large
household members have high numbers of children lees than fourteen (14) years old and lees
numbers of productive age group than small household.
Table 3 .Age category of households’ members of respondents.

Age of HH Small Members of Members of

members mem HH size medium HH size large HH size

Frequency % Frequency % frequency %

0-14 15 25 23 38 9 15

15-64 43 72 30 50 28 46.66

>65 2 3 7 12.2 23 38.3

Total 60 100 60 100 60 100

Source: own survey, 2023.

According to the table 3, age structure of different categories of households members Burayu town.
Considering the age structure of the population, the proportion of the population under age of 15
and above 65 to productive age group is high. This shows high level of dependency burden and
high potential for rapid population growth.
Table 4.3 indicates the proportion of productive age group (15-64) is highest for households with
small families (72%) and lowest for large size households (38.3%).

15
Table 4 Social-economic factors affecting.

Reasons Small HH Medium Large HH

size HH size size

Frequency % Frequency % frequency %

For old age security 6 21.4 6 24 2 28.6

For boost plan sure 10 35.7 9 36 1 14.3

Social importance 12 42.9 10 40 4 57.1

culture

Source: own survey, 2023.

According to the respondents response, most of them pointed out that large number of children in
the household was due to the fact that parents needs children for different reason: old age security
14/60 (23.33%) for boost plan sure 20/60 (33.33) and for social importance in culture 26/60
(43.33).These all are the factors for rapid growth of household size in the study area. Most of the
small household size respondents (42.9%) need children social importance culture where as the
medium and large households need children social importance culture 40% and 57.1%
respectively. According to Getahun and Eshete (2018) religion plays a dual role in rapid population
growth by condemning modern methods and contraceptive methods and promoting large families.
There are also cultural deeply rooted pressures to have many children and the belief exists that
more children means greater economic benefits for the family.
4.3 Household size and education
It is well; known that household size is one determinant for every household members to get
educational opportunities. Children in large household size are less accessible to education
compared with those are in medium and small household size.
Table 5 Ability of households to educate their children.
Response Frequency Percent
Yes 28 46.7

No 32 53.3

Total 60 100

Source: own survey, 2023.

16
According to this table 5, 53.3% of respondents are unable to teach their family members where
as 46.7% of them is able to teach all of family member’s large percentage of those with large
household size. This is due to the fact that their income distributed to meet the needs and wants of
each and every household member.
4.4 Household size and health
Household status and the ability household to access to health care are highly affected by
population pressure and high fertility rate together with rapid growing population NOP, 2021).
According to respondents small household size have adequate health than those with medium and
large household size. They for warded that they can afford to buy and eat balanced diet which
could resist disease, many of them enjoy better income than large and medium household size.
Also large and medium household sizes are characterized by a large number of dependent children
who are expecting their family for themselves.
As a result, the proportion of household income spent of food is low and they are unable to afford
better food than resist disease. On the other hand, they could not afford to pay health service
charges for treatment obtained from health centers. In addition to in ability to pay afford drugs lack
of family treatment is one reason. So, large household sizes are more vulnerable to diseases than
others. Based on this information from table 4.3.
4.5 Activity diversification
According to the information gained from 60 household they were engaged different activities or
jobs. These activities involved employment indifferent institution, NGOs, daily labor and private
trade enterprises.
Table 6 Activity diversification
Activities Frequency Percent
Private trade enterprise 17 28.3
Daily labor 18 30
Government employee 15 25
Non-government 10 16.7
organization employee(NGO)
Total 60 100

Source: own survey, 2023.

From table 6 large percentages (30%) of household are engaged in daily labor activity while
remaining 28.3%, 25% and 16.7% of household are engage in private trade enterprise, government

17
employee and non-government organization employee activities. This implies large share of them
(households) are daily laborers whose income is low compared to other activities.
4.6 Additional job activity
In the society these is additional job activity done beyond to governmental employee activities
such as; small amount of agriculture, shopping and stansionery are mentioned.
Table 7 Additional job activity

Activity Frequency Percent

Small amount of agriculture 25.2 42

Small amount of shopping 28.2 47

Small amount of stationary 6.6 11

Total 60 100

Source: own survey, 2023.

Table 7 shows that number of respondent which accounted 47% of total respondent engaged in
shopping economic activity. Whereas the remaining balance accounted 42% and 11% of
agricultural and stationary activity
4.7 Income consumption
The consumption level of our society subject to income they get either per monthly or temporary.
It is obvious that the household has got low level of income in case of this consumption would be
high.
Table 8 Income consumption
Respondent Frequency Percent

Yes 39 65

No 21 35

Total 60 100

Source: own survey, 2023.

Table 8, shows that those spent more income for consumption accounted 65% out of total
respondent and those not spent were 35% of total respondents.

18
4.8 Household income inequality
Personal income inequality between individuals fails to explain the level of extreme distribution at
the household level. Thus the level of income may be affected due to family size and clearly shows
the level of inequality at the household level.
Table 9 Annual household income and household.
Amount of income Number of individual in the listed Number of families
amount Percent
<1000
1001-10,000 20 33.4 70
10,001-30,000 14 23.3 50
30,001-60,000 14 23.3 36
60,001-100,000 4 6.7 15
100,001-500,000 2 3.3 10
500,001-1000,000 3 5 15
>1000,000 3 5 15
Total 60 100
Source: own survey, 2023 from table 9, greater than half of the sampled population (56.7%) earns
income between 1001-30,001 whereas none of them earn below 1000. The remaining 44.3% earn
between 30,001 and 100,000 and above. But this cannot show the actual level of inequality but
when we consider the size of the family in each income group it is mica reliable.
4.9 Measuring income inequality
Whether the country is developing or developed measuring of inequality is one part that identifies
welfare problems. To achieve this economists usually like to distinguish between two measures of
income distribution which are household or personal distribution of income and factors share of
distribution of income. Economists most commonly uses the size distribution of income that
simply deals with households or individuals and total income they receive.
They way in which income is received is not considered, what matters is how much each
households earn irrespective of whether the income was divided solely from employment or
income from other sources such as rent, gift or in heritance etc.

19
 CHAPTER FIVE
CONCLUTION AND RECOMMENDATIONS
5.1 Conclusion
From the information gathered, analyzed and based this particularly study the following major
points could be generalized regarding the effect of family size on their income and distribution.
The majority of households of the study area Burayu town are found are age group between 1824
and 25-35 and this age group has significant effect in an increasing the size of the household. Also
most of the households have a problem of high number of children for security at old age which
increases the population more children secured at their old age which in turn increases the size of
household. By comparing different household categories various conclusion have been drawn. The
small household size enjoy fine standard of living because they have more income when they are
compared with large household size. Large household size is more vulnerable to less educational
attainment than those with small, and medium household should size. Also the saving capacity of
large household is low because of the additional person in the large household size and this has a
negative relationship with income consumes the available income generated mostly by the head of
the households. The researchers took a sample of sixty [60] households from household population
of the woreda and distributed questionnaires not only the level of their income but also their
respective family or (household) size was considered.
5.2 Recommendation
Based on the result data analysis the following recommendation forwarded by the researchers to
concerned body.
 The government should be provide health center to the society in order to reduce the
number of population size and improve the level of household income.
 To create awareness to the people and distributing educational facilities.
 Increase women are productive and raise their income for betterment of their lives of the
household in the society as a whole.
 The administration of Burayu town should give more incentive to female activities.
 Family planning most be improve in the area of those population.
 Since household size does have prominent impact on their income and distribution
government should set up equal opportunities for the poor (mostly large household size)
with assort of support to make them participant in productive economic activities.
 There should be financial and other incentive to encourage parents to have fewer children.

20
REFERENCE

Abebe B, 2019 Women development agents, Addis Ababa. CSA, 2019 population issues.
Campbell, S, L Brue, 2019; Contemporary labor economics.
FAO committee on world food security, Assessment of the current world food situation and recent
policy development, March 2019.
Forum for social study, 2023; Papers presented at the first international conference on the Ethiopian
economy January 3-05, 2023.
Funchs, V.R, 1983: How we live, an economic perspective on Americans from birth to death,
Cambridge: Harvard University Press.
Getahun.H and Esthete, 2023: macro level operational barriers to family planning services in
Ethiopian.
Hirut terefe, 2018: The role of Ethiopian women in national building department of sociology,
AAU, Seminar paper.
Jhingan. M. L, 2019: Economics of development and planning.
National office and population/NOP, 2021/: population and development, Addis Ababa, Ethiopia.
National Labor force survey (NLFS), 2021: labor force survey, central statistical authority,
Ethiopia.
Person, Addison, 2020: International economics
Ray Debray, 2019, Development economics, Beijing University press, chines edition 2019.
Selam Avele Tesema, 2020: population, food security and environment.
Todaro, 2023: Economic development, New york University, 11edition.

21
APPENDIX
Dear respondents this questionnaire is prepared for the purpose of obtaining information and
knowing the effect of household size on household income in Burayu town and you have been
selected to be part of sample. The study is purely for academic purpose and the information
obtained will be treated with the highest degree of confidential.
General Direction
No need to write your name.

Please tick in the profiling box your choice

Give short answer and precise for the provided question submit after your answer the questions

1) Sex; a) Male b) Female

2) Age ; a) 18-24 b) 25-35 c) >

3) Educational level

a) 1- 5 b) 6-10 c) 11-12 d) certificates e) diploma f)

degree

4) Number of family member…………………………………………………………………….

5) Age of family member

a) 01-14year b) 15-64year C) > 65year 6) What are

basic motives for you to have children?

a) For old age security b) for boost pleasure

c) Social importance in culture d) other specify

7) If your answer for question number 6 is choice “D” please specifies those
motives………………………………………………………………………………………….

22
8) Do you/can you teach all of your family members?
a) Yes b) no

9) If no, why (specify)…………………………………

10) How about the health status of your family?

11) What types of job you run?

a) Private trade enterprise b) daily labor c) government employee

d) Non-governmental organization employee

12) if in question number 11 choice “c” what type of other additional job your run?

a) Small amount in agriculture b) small amount in shopping

c) Small amount instensionary d) other specify…………………………

13) Are you spend more of your income on consumption?

a) Yes b) no

14) Annual income level:

a) <1000 b) 1001-10000 c) 10001-30000 d) other specify

23