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Nonfarm Employment and Poverty Reduction in Rural Ghana: A Propensity-Score Matching Analysis


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  • Owusu, Victor
  • Abdulai, Awudu


This article investigates the impact of nonfarm employment on farm household income and way out of poverty, using farm household data from Brong-Ahafo region of Ghana. A propensity score matching model is used to evaluate the impact participating in both wage and self-employment. Separate estimates are also provided for males and females. The results from the study show that nonfarm employment has a positive and robust effect on farm household income and a negative and significant effect on the likelihood of being poor. Self-employment was found to have much higher impacts than wage employment, reflecting the fact that most employment opportunities in the rural areas are in the former sector.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51363.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51363

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Keywords: Non-farm employment; Poverty; Matching; Community/Rural/Urban Development; Consumer/Household Economics; Food Security and Poverty; Research Methods/ Statistical Methods;


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