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Determinants of Land and Labour Market Participation Decisions in Rural Ethiopia

Author

Listed:
  • Muna Shifa

    (Post-doctoral fellow, Southern Africa Labour and Development Research Unit, University of Cape Town, South Africa)

Abstract

This paper attempts to determine the factors influencing farmers' land and labour market participation decisions in rural Ethiopia. A multivariate probit estimation technique is used to account for potential interdependencies between land and labour allocation strategies. Results suggest that households that are better endowed with farming resources such as oxen and farming skills are more likely to get access to more land and labour through factor markets, while households that are less endowed with these resources are more likely to rent out their land and participate in off-farm jobs. The complementary nature of land renting out and involvement in off-farm work suggests that policy makers should give due consideration to the development of rural off-farm jobs to reduce poverty in rural areas.

Suggested Citation

  • Muna Shifa, 2016. "Determinants of Land and Labour Market Participation Decisions in Rural Ethiopia," Journal of African Development, African Finance and Economic Association (AFEA), vol. 18(2), pages 73-90.
    • Handle: RePEc:afe:journl:v:18:y:2016:i:2:p:73-90
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    File URL: http://www.afeawpapers.org/RePEc/afe/afe-journl/wp-content/uploads/2017/01/06_Shifa_rev2.pdf
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    Citations

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    Cited by:

    1. Yemane Asmelash Gebremariam & Joost Dessein & Beneberu Assefa Wondimagegnhu & Mark Breusers & Lutgart Lenaerts & Enyew Adgo & Zemen Ayalew & Amare Sewenet Minale & Jan Nyssen, 2021. "Determinants of Farmers’ Level of Interaction with Agricultural Extension Agencies in Northwest Ethiopia," Sustainability, MDPI, vol. 13(6), pages 1-24, March.
    2. Simbarashe Tatsvarei & Abbyssinia Mushunje & Saul Ngarava & Clifton Makate, 2018. "Determinants of Informal Land Renting Decisions by A1 and A2 Farmers in Mashonaland East Province of Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 70-78.
    3. Muna Shifa & Murray Leibbrandt, 2018. "Relative Economic Position and Subjective Well-Being in a Poor Society: Does Relative Position Indicator Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 611-630, September.

    More about this item

    Keywords

    Agricultural labour Markets; Land rental Markets; off-farm employment; Multivariate probit model; rural Ethiopia;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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