Disability and its Consequence on Consumption : Evidence from Ethiopian Households

This paper examines the prevalence of disability and its effects on household consumption. The fixed effects model is estimated to analyze the impact of disability on consumption. The disability prevalence rate is as large as 30% of surveyed households. The results show that disability of any degree of severity in any of the six functional domains affects all non-health consumption items except for food while disability coming from a severe degree of difficulty has a larger adverse effect on household consumption of all items, implying both short-run and long-run effects. Comparatively, disability highly hits households from rural areas