Ordinal Logistic Regression Analysis in Determining Factors Associated with Socioeconomic Status of Household in Tepi Town, Southwest Ethiopia

Background. Socioeconomic status (SES) refers to an individual’s or group’s social position or class, which is often determined by a combination of education, income, and occupation. Knowing factors that affect the SES of the society might help to take action and improve their economy. In addition, using an ordinal logistic regression model for ordered SES outcomes will yield suitable results and conclusions. This study aimed to utilize an ordinal logistic regression model to find the factors associated with SES for households in Tepi town, Southwest Ethiopia. Methods. The community-based cross-sectional study was carried out in Tepi town, southwest Ethiopia, with data collected from 382 households using a simple random sample technique. The ordinal logistic regression models were evaluated and contrasted for proper accounting of ordinal form. In addition, to come up with a better model, we compared fitted ordinal logistic models with the likelihood-ratio test and AIC criteria. We performed data analysis using STATA version 16. Results. Of all 382 household heads, 170 (45.5%), 120 (31.4%), and 92 (24.1%) were at low, medium, and high SES of households, respectively. According to the result of the multivariable, partial proportional odds model (PPOM), age, education level, family size, and the saving habit were significantly associated with the SES of households at a 5% level of significance. Conclusions. According to the findings of this study, ordinal regression may be a better option in the event of the ordinal form of the outcome. Furthermore, PPOM may be a preferable option if any of the covariates violate the proportionality requirement. Based on the result of this study, the most likely associated indicators with the SES of families in Tepi town, southwest Ethiopia, were family size, age, saving habit, and education level. It is recommended that action should be taken to improve the SES of households.