Exploring Livelihood Diversification as a Sustainable Response to Food Insecurity: In the Case of Gubalafto Woreda, Ethiopia

Widespread food insecurity remains the major challenges in Ethiopia. Livelihood diversification is commonly accepted as the promising strategy to escape from food insecurity shocks. Thus, the main purpose of this study is to investigate the livelihood diversification strategies as a viable approach to overcome food insecurity in Gubalafto Woreda. The study employed a mixed research approach with a cross‐sectional survey research design. Combinations of purposive and random sampling techniques were used to select 190 sample households. Data were obtained through a household survey using a well‐structured questionnaire, focus group discussions (FDGs), and key informant interview (KII). Descriptive statistics, Simpson Diversity Index (SDI), and propensity score matching (PSM) were employed for data analysis. Findings revealed that 51% of the households had not diversified their livelihood. The SDI showed that the percentages of low, average, and high diversifiers were 8.9%, 16%, and 23%, respectively. The findings further showed that the PSM estimates, on average, diversified households had a 0.35 (4.8%) reduction in food insecurity values while their counterparts (nondiversified), on average, had a 1.39 (18.9%) rise in household food insecurity. The differences in food insecurity levels between nondiversified and diversified households are statistically significant at p < 0.01. This indicates that livelihood diversification significantly enhances food security for those households. Hence, government officials at various levels and nongovernment organizations shall give special attention to promoting off/nonfarm activities to increase income and reduce food insecurity of rural households.