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Welfare Effects Of Smallholder Farmers’ Participation In Livestock Markets In Zambia


  • Lubungu, Mary


Does participation in livestock markets improve the welfare levels of smallholder farmers in Zambia? Are there any biases in the distribution of benefits between poor and better off households? To address these questions, we employ propensity score matching and decomposition techniques on nationally representative household survey data collected from smallholder farmers in Zambia. Our findings suggest that, other factors constant, participation in cattle markets raises household income by over 50% on average among cattle selling households. However, decomposition results suggest that poor households derive relatively smaller benefits from participation than their non-poor counterparts due to discrimination which accounts for 80.3% of the inter-group income differential.

Suggested Citation

  • Lubungu, Mary, 2013. "Welfare Effects Of Smallholder Farmers’ Participation In Livestock Markets In Zambia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150606, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:150606

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    References listed on IDEAS

    1. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    2. Benjamin Davis & Paul Winters & Gero Carletto & Katia Covarrubias & Esteban Quinones & Alberto Zezza & Kostas Stamoulis & Genny Bonomi & Stefania DiGiuseppe, 2007. "Rural Income Generating Activities; A Cross Country Comparison," Working Papers 07-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    3. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    4. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    5. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, January.
    6. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
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