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Employment Dynamics in the Rural Nonfarm Sector in Ethiopia: Do the Poor Have Time on Their Side?

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  • Sosina Bezu
  • Christopher Barrett

Abstract

We study rural employment transitions in Ethiopia between farming and both low- and high-return nonfarm employment. We find that initial asset holdings and access to saving and credit are important factors for transition into high-return rural nonfarm employment and that households' participation in high-return rural nonfarm activities is robust to their experience of health shocks. However, shocks that affect their wealth or liquidity may trigger descents into low-return nonfarm employment. On the other hand, shocks that reduce agricultural income motivate transitions into high-return rural nonfarm employment.

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File URL: http://hdl.handle.net/10.1080/00220388.2012.671476
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 48 (2012)
Issue (Month): 9 (September)
Pages: 1223-1240

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Handle: RePEc:taf:jdevst:v:48:y:2012:i:9:p:1223-1240

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Cited by:
  1. Bezu, Sosina & Holden, Stein T., 2013. "Land Access and Youth Livelihood Opportunities in Southern Ethiopia," MPRA Paper 49860, University Library of Munich, Germany.
  2. Rijkers, Bob & Söderbom, Måns, 2013. "The Effects of Risk and Shocks on Non-Farm Enterprise Development in Rural Ethiopia," World Development, Elsevier, vol. 45(C), pages 119-136.
  3. Szirmai, Adam & Gebreeyesus, Mulu & Guadagno, Francesca & Verspagen, Bart, 2013. "Promoting productive employment in Sub-Saharan Africa: A review of the literature," MERIT Working Papers 062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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