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Income diversification and household welfare in Uganda 1992-2012

Author

Listed:
  • Rumman Khan
  • Oliver Morrissey

Abstract

We use six waves of national household surveys in Uganda, from 1992/3 to 2012/13, to study income diversification by households for a period of two decades during which the country saw sustained economic growth and poverty reduction. The income sources are agriculture (farming), agricultural wage, self-employment (informal), wage employment and remittances. We present estimates based on data from the individual surveys pooled and then, to capture dynamics and go some way towards addressing endogeneity, we provide estimates from a pseudo-panel. We find that households with more diversified income sources tend to lower consumption welfare, indicating diversification has mainly been due to push factors (the need for income pushing people into low earning activities). This is because much of the diversification has been into the agricultural wage sector, particularly amongst the poorest households who have also experienced reductions in remittances. Welfare (in terms of adult equivalent expenditure) is higher for households engaged in the non-agricultural wage sector, but growth in wage employment has been very low. This is one of the first studies to look at household welfare and income diversification at the national level (rural and urban) over such an extended period of time.

Suggested Citation

  • Rumman Khan & Oliver Morrissey, 2019. "Income diversification and household welfare in Uganda 1992-2012," Discussion Papers 2019-05, University of Nottingham, CREDIT.
    • Handle: RePEc:not:notcre:19/05
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    Cited by:

    1. Baulia, Susmita, 2024. "Is household shock a boon or bane to the utilisation of preventive healthcare for children? Evidence from Uganda," Economics & Human Biology, Elsevier, vol. 52(C).
    2. Shijia Cai & Bo Gao & Jie Zhou & Guanghua Qiao, 2023. "The Impact of Informal Learning on Herders’ Operating Income: An Analysis Based on Human Capital Differences," Agriculture, MDPI, vol. 13(8), pages 1-16, August.
    3. Khan, Rumman & Morrissey, Oliver, 2023. "Income diversification and household welfare in Uganda 1992–2012," Food Policy, Elsevier, vol. 116(C).

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    Keywords

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    JEL classification:

    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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