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Household-Level Consumption in Urban Ethiopia: The Effects of a Large Food Price Shock

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  • Alem, Yonas
  • Söderbom, Måns

Abstract

We use survey data to investigate how urban households in Ethiopia coped with the food price shock in 2008. Qualitative data indicate that the high food price inflation was by far the most adverse economic shock between 2004 and 2008, and that a significant proportion of households had to adjust food consumption in response. Regression results indicate that households with low asset levels, and casual workers, were particularly adversely affected by high food prices. We interpret the results as pointing to the importance of growth in the formal sector so as to generate more well-paid and stable jobs.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 1 ()
Pages: 146-162

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:1:p:146-162

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: consumption; welfare; food price shock; Africa; urban Ethiopia;

References

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  1. Mans Soderbom & Arne Bigsten and Mulu Gebreeyesus, 2009. "Gradual Trade Liberalization and Firm Performance in Ethiopia," Economics Series Working Papers CSAE WPS/2009-21, University of Oxford, Department of Economics.
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Citations

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Cited by:
  1. Alem, Yonas, 2013. "Relative Standing and Life-Satisfaction: Does Unobserved Heterogeneity Matter?," Working Papers in Economics 579, University of Gothenburg, Department of Economics.
  2. Fujii, Tomoki, 2013. "Impact of food inflation on poverty in the Philippines," Food Policy, Elsevier, vol. 39(C), pages 13-27.
  3. Alem, Yonas, 2014. "Life-Satisfaction in Urban Ethiopia: The Role of Relative Poverty and Unobserved Heterogeneity," Discussion Papers dp-14-04-efd, Resources For the Future.
  4. Alem, Yonas, 2014. "Poverty Persistence and Intra-Household Heterogeneity in Occupations: Some Evidence from Ethiopia," Discussion Papers dp-14-05-efd, Resources For the Future.
  5. Alem, Yonas & Köhlin, Gunnar & Stage, Jesper, 2014. "The Persistence of Subjective Poverty in Urban Ethiopia," World Development, Elsevier, vol. 56(C), pages 51-61.
  6. Combes, Jean-Louis & Ebeke, Christian Hubert & Etoundi, Sabine Mireille Ntsama & Yogo, Thierry Urbain, 2014. "Are Remittances and Foreign Aid a Hedge Against Food Price Shocks in Developing Countries?," World Development, Elsevier, vol. 54(C), pages 81-98.
  7. Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
  8. Alem, Yonas & Köhlin, Gunnar, 2012. "Life Satisfaction in Urban Ethiopia: Trends and determinants," Working Papers in Economics 548, University of Gothenburg, Department of Economics.
  9. Alem, Yonas & Beyene, Abebe D. & Kohlin, Gunnar & Mekonnen, Alemu, 2013. "Household Fuel Choice in Urban Ethiopia: A Random Effects Multinomial Logit Analysis," Discussion Papers dp-13-12-efd, Resources For the Future.
  10. Yonas Alem & Gunnar Köhlin, 2014. "The Impact of Food Price Inflation on Subjective Well-being: Evidence From Urban Ethiopia," Social Indicators Research, Springer, vol. 116(3), pages 853-868, May.
  11. Headey, Derek D. & Bachewe, Fantu Nisrane & Worku, Ibrahim & Dereje, Mekdim & Taffesse, Alemayehu Seyoum, 2012. "Urban wage behavior and food price inflation: the case of Ethiopia [Working Paper]:," ESSP working papers 41, International Food Policy Research Institute (IFPRI).
  12. Alem, Yonas & Colmer, Jonathan, 2013. "Optimal Expectations and the Welfare Cost of Climate Variability," Working Papers in Economics 578, University of Gothenburg, Department of Economics.
  13. Ambaye, Guesh Gebremeskel, 2012. "Perception of Poverty by Ethiopian Rural Households: Using a Self Reported approach," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4), December.
  14. Alem, Yonas, 2013. "Poverty Persistence and Intra-Household Heterogeneity in Occupations: Evidence from Urban Ethiopia," Working Papers in Economics 580, University of Gothenburg, Department of Economics.
  15. Durevall, Dick & Loening, Josef L. & Ayalew Birru, Yohannes, 2013. "Inflation dynamics and food prices in Ethiopia," Journal of Development Economics, Elsevier, vol. 104(C), pages 89-106.

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