ADSU International Journal of Applied Economics, Finance and Management

An Analysis Of The Socio-Economic Implication Of Low Income Levels On Household Consumption Pattern In Mubi North Local   Government Area, Adamawa State, Nigeria

Abstract

Households’ consumption pattern is dynamic, due to income, social and economic changes. This research analyses the socio-economic implications of low-income levels on households’ consumption pattern in Mubi North Local Government Area, Adamawa State of Nigeria. The sample size of the study was 400 low-income households from a population of 274,188 of Mubi North Local Government Area. Yamane’s Sample Size formula was applied in determining the sample size of the study. Primary data were used during the course of the research, and were sourced using questionnaire administered to lowincome households in Mubi North Local Government Area. Stratified and systematic sampling techniques were applied in administering the questionnaire. The study adopted Ordinary Least Square (OLS) and Probit models. Descriptive and inferential statistics were used for data analysis and presentation. Ordinary Least Square (OLS) was used in estimating the determinants of households’ income, Probit model was used in explaining socio-economic determinants of factors such as Age, Gender, Education and Hours Worked per Day, and their implication on households’ consumption pattern. The findings of this study showed that socio-economic factors such as Age, Gender, Education and Hours Worked per Day have significant impact on households’ income generation, and they are statistically significant of p=0.0000 probability value. It also showed that social and economic factors have implications on income and households’ consumption pattern. It was recommended that government should improve the welfare package of civil servants’ household income through reviewing their minimum wages and salaries and also set good social intervention program to assist low-income level households. Government of the federation should set an interest rate policy that can encourage borrowing in order to boost business activities that will improve income earning.