IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v9y2017i5p83-92.html
   My bibliography  Save this article

Income Diversification, Inequality and Poverty among Rural Households in Oyo State, Nigeria

Author

Listed:
  • Olubunmi O Alawode
  • Isaac B Oluwatayo
  • Afusat O Abdullahi

Abstract

The study examined income diversification, inequality and poverty among rural households in Oyo state, Nigeria. Cross-section data were generated from the survey conducted on a sample of 200 households with the aid of structured questionnaire using multi-stage sampling procedure. Descriptive statistics, diversification index, Gini coefficient, FGT poverty index, and the Probit regression model were used to analyze data. Mean income diversification index of 1.22 shows that majority of the respondents had multiple streams of income but crop farming had the largest share (90%) in total income. Mean income of respondents was ₦77,613.2±83575.01, and Gini coefficient of 0.48, 0.46, and 0.39 were obtained for total income, nonagricultural income, and agricultural income respectively. The poverty line was ₦6,490.50 and mean per capita expenditure was ₦9,735.74. The head count ratio showed that 53.5% of the households were poor while 46.5% were regarded as non-poor, and poverty gap was 0.214. From probit results, age, secondary occupation, and farm size had significant inverse relationship with poverty status. Having primary and secondary income sources is poverty reducing, therefore, rural households should be encouraged to remain in farming, especially crop farming, and motivated through skill acquisition to diversify into other income generating activities.

Suggested Citation

  • Olubunmi O Alawode & Isaac B Oluwatayo & Afusat O Abdullahi, 2017. "Income Diversification, Inequality and Poverty among Rural Households in Oyo State, Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 83-92.
    • Handle: RePEc:rnd:arjebs:v:9:y:2017:i:5:p:83-92
    DOI: 10.22610/jebs.v9i5(J).1911
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/1911/1513
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/1911
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v9i5(J).1911?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nwachukwu, Ifeanyi N. & Ezeh, Chima I., 2007. "Impact of Selected Rural Development Programmes on Poverty Alleviation in Ikwuano LGA, Abia State, Nigeria," MPRA Paper 13720, University Library of Munich, Germany.
    2. Bryceson, Deborah Fahy, 1996. "Deagrarianization and rural employment in sub-Saharan Africa: A sectoral perspective," World Development, Elsevier, vol. 24(1), pages 97-111, January.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
    5. Bryceson, Deborah Fahy, 2002. "The Scramble in Africa: Reorienting Rural Livelihoods," World Development, Elsevier, vol. 30(5), pages 725-739, May.
    6. Lawal, Justina Oluwayemisi & Omonona, Bolarin T. & Oyinleye, O.D., 2011. "Effects of Livelihood Assets on Poverty Status of Farming Households’ in Southwestern, Nigeria," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114392, European Association of Agricultural Economists.
    7. Ersado, Lire, 2006. "Income diversification in Zimbabwe : welfare implications from urban and rural areas," Policy Research Working Paper Series 3964, The World Bank.
    8. Kimenju, Simon C. & Tschirley, David L., 2008. "Agriculture and Livelihood Diversification in Kenyan Rural Households," Working Papers 202614, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    9. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olubunmi O. Alawode, 2021. "Rural Land Market, Livelihood and Welfare among Households in Oyo State, Southwest Nigeria," Business and Management Studies, Redfame publishing, vol. 7(1), pages 45-58, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bezu, Sosina & Holden, Stein, 2014. "Are Rural Youth in Ethiopia Abandoning Agriculture?," World Development, Elsevier, vol. 64(C), pages 259-272.
    2. Dil Bahadur Rahut & Akhter Ali & Menale Kassie & Paswel P. Marenya & Chudamani Basnet, 2014. "Rural Livelihood Diversification Strategies in Nepal," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 259-281, September.
    3. Riithi, Alexander Njuguna & Irungu, Patrick & Munei , Kimpei, 2015. "Determinants Of Choice Of Alternative Livelihood Diversification Strategies In Solio Resettlement Scheme, Kenya," Dissertations and Theses 269714, University of Nairobi, Department of Agricultural Economics.
    4. Adugna Lemi, "undated". "The Dynamics of Income Diversification in Ethiopia: Evidence from Panel data," Working Papers 3, University of Massachusetts Boston, Economics Department.
    5. Quang Tran, Tuyen, 2012. "A review on the link between nonfarm activities, land and rural livelihoods in Vietnam and developing countries," MPRA Paper 55850, University Library of Munich, Germany, revised 17 Nov 2013.
    6. Zereyesus, Yacob & Embaye, Weldensie & Tsiboe, Francis & Amanor-Boadu, Vincent, 2016. "Participation in non-farm work and vulnerability to food poverty of households in northern Ghana," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235741, Agricultural and Applied Economics Association.
    7. Hilson, Gavin & Hilson, Abigail & Maconachie, Roy, 2018. "Opportunity or necessity? Conceptualizing entrepreneurship at African small-scale mines," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 286-302.
    8. Sadia Banchirigah & Gavin Hilson, 2010. "De-agrarianization, re-agrarianization and local economic development: Re-orientating livelihoods in African artisanal mining communities," Policy Sciences, Springer;Society of Policy Sciences, vol. 43(2), pages 157-180, June.
    9. Bryceson, Deborah Fahy & Jønsson, Jesper Bosse, 2010. "Gold Digging Careers in Rural East Africa: Small-Scale Miners' Livelihood Choices," World Development, Elsevier, vol. 38(3), pages 379-392, March.
    10. Menashe-Oren, A. & Stecklov, G., 2017. "IFAD RESEARCH SERIES 17 - Population age structure and sex composition in sub-Saharan Africa: a rural-urban perspective," IFAD Research Series 280055, International Fund for Agricultural Development (IFAD).
    11. Nandika S. Kumanayake & Jonna P. Estudillo & Keijiro Otsuka, 2014. "Changing Sources of Household Income, Poverty, and Sectoral Inequality in Sri Lanka, 1990–2006," The Developing Economies, Institute of Developing Economies, vol. 52(1), pages 26-51, March.
    12. Bahiigwa, Godfrey & Rigby, Dan & Woodhouse, Philip, 2005. "Right Target, Wrong Mechanism? Agricultural Modernization and Poverty Reduction in Uganda," World Development, Elsevier, vol. 33(3), pages 481-496, March.
    13. Dil Bahadur Rahut & Khondoker Abdul Mottaleb & Akhter Ali, 2018. "Rural Livelihood Diversification Strategies and Household Welfare in Bhutan," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(4), pages 718-748, September.
    14. Gavin Hilson & Chris Garforth, 2012. "‘Agricultural Poverty’ and the Expansion of Artisanal Mining in Sub-Saharan Africa: Experiences from Southwest Mali and Southeast Ghana," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 31(3), pages 435-464, June.
    15. Maconachie, Roy & Hilson, Gavin, 2016. "Re-Thinking the Child Labor “Problem” in Rural sub-Saharan Africa: The Case of Sierra Leone’s Half Shovels," World Development, Elsevier, vol. 78(C), pages 136-147.
    16. Mamoudou Ba & Amar Anwar & Mazhar Mughal, 2021. "Non‐farm employment and poverty reduction in Mauritania," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(3), pages 490-514, April.
    17. Zereyesus, Yacob A. & Embaye, Weldensie T. & Tsiboe, Francis & Amanor-Boadu, Vincent, 2017. "Implications of Non-Farm Work to Vulnerability to Food Poverty-Recent Evidence From Northern Ghana," World Development, Elsevier, vol. 91(C), pages 113-124.
    18. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    19. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    20. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:9:y:2017:i:5:p:83-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.