Determinants of smallholder farmer labour allocation decisions in Uganda
There is growing evidence of the increasing role of nonfarm activities in the rural livelihoods. However, empirical evidence on the factors that influence smallholder farmers to diversify into nonfarm activities is still scanty. The study analyses the factors that influence household labour allocation decisions and demand for hired farm labour. It was carried out in central, Masaka and southwest regions of the country, which have divergent production constraints and opportunities. The study shows that household members respond positively to increases in shadow wages and negatively to increases in shadow incomes, which implies that they respond to economic incentives. Increase in wage rates negatively affects use of hired labour. Household size has no effect on the use of hired labour, implying that economic rationing of hiring labour has more to do with the market wage than family size and composition. Education and road access have a positive effect on time allocated to off-farm activities. Access to off-farm opportunities, however, takes away the most productive labour from farm production. Investment in road infrastructure, education and financial institutions suited to smallholder production needs could help to alleviate the bottlenecks in the labour, food and financial markets, and improve resource allocation between the farm and nonfarm sectors.
|Date of creation:||2007|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Newman, Constance & Canagarajah, Sudharshan, 2000. "Gender, poverty, and nonfarm employment in Ghana and Uganda," Policy Research Working Paper Series 2367, The World Bank.
- Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
- Frank Ellis & H Ade Freeman, 2004. "Rural Livelihoods and Poverty Reduction Strategies in Four African Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 40(4), pages 1-30.
- Barnum, Howard N. & Squire, Lyn, 1979. "An econometric application of the theory of the farm-household," Journal of Development Economics, Elsevier, vol. 6(1), pages 79-102, February.
- 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.
- Matshe, Innocent & Young, Trevor, 2004. "Off-farm labour allocation decisions in small-scale rural households in Zimbabwe," Agricultural Economics, Blackwell, vol. 30(3), pages 175-186, May.
- Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
- James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
- Ahn, Choong Yong & Singh, Inderjit & Squire, Lyn, 1981.
"A Model of an Agricultural Household in a Multi-Crop Economy: The Case of Korea,"
The Review of Economics and Statistics,
MIT Press, vol. 63(4), pages 520-525, November.
- Ahn, C.Y. & Singh, Inderjit & Squire, Lyn, 1979. "A Model of an Agricultural Household in a Multi-Crop Economy: the Case of Korea," 1979 Conference, September 3-12, 1979, Banff, Canada 182430, International Association of Agricultural Economists.
- Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
- Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," Review of Economic Studies, Oxford University Press, vol. 60(4), pages 903-921.
- Pender, John & Nkonya, Ephraim & Jagger, Pamela & Sserunkuuma, Dick & Ssali, Henry, 2004. "Strategies to increase agricultural productivity and reduce land degradation: evidence from Uganda," Agricultural Economics, Blackwell, vol. 31(2-3), pages 181-195, December.
- Pender, John L. & Nkonya, Ephraim M. & Jagger, Pamela & Sserunkuuma, Dick & Ssali, Henry, 2003. "Strategies To Increase Agricultural Productivity And Reduce Land Degradation: Evidence From Uganda," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25816, International Association of Agricultural Economists.
- J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, vol. 1(1), pages 33-58, January.
- Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
- Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82.
- Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
- Abdulai, Awudu & Regmi, Punya Prasad, 2000. "Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(3), April.
- Abdulai, Awudu & Regmi, Punya Prasad, 2000. "Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal," Agricultural Economics, Blackwell, vol. 22(3), pages 309-320, April.
- Udry, Christopher & Hoddinott, John & Alderman, Harold & Haddad, Lawrence, 1995. "Gender differentials in farm productivity: implications for household efficiency and agricultural policy," Food Policy, Elsevier, vol. 20(5), pages 407-423, October.
- Awudu Abdulai & Christopher L. Delgado, 1999. "Determinants of Nonfarm Earnings of Farm-Based Husbands and Wives in Northern Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 117-130.
- Gronau, Reuben, 1973. "The Intrafamily Allocation of Time: The Value of the Housewives' Time," American Economic Review, American Economic Association, vol. 63(4), pages 634-651, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ags:eaa106:7920. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.