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Activity Choice in Rural Non-farm Employment (RNFE): Survival versus accumulative strategy

Author

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  • Bezu, Sosina

    (Centre for Land Tenure Studies, Norwegian University of Life Sciences)

  • Barrett, Christopher B.

    (Department of Applied Economics and Management, Cornell University, USA)

  • Holden, Stein

    (Centre for Land Tenure Studies, Norwegian University of Life Sciences)

Abstract

This paper examines the nonfarm employment choice of individuals using panel data from Ethiopia that covers the period 1994-2004. Non-farm activities that require more resources in the form of skill or capital yield higher returns but employ proportionately fewer people. Women have lower participation rate than men, and those women who participate are often engaged in low-return activities. The econometric results suggest that the factors that influence individuals’ decision to participate in non-farm employment differ for the different types of activities. Determinants of participation in high-return activities are dominated by capacity variables. Determinants of participation in low-return activities are dominated by push factors. Education is the only factor that has the same (positive) impact on the likelihood of participation in all types on non-farm employment. Education was also found to have more impact on participation of women.

Suggested Citation

  • Bezu, Sosina & Barrett, Christopher B. & Holden, Stein, 2014. "Activity Choice in Rural Non-farm Employment (RNFE): Survival versus accumulative strategy," CLTS Working Papers 11/14, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    • Handle: RePEc:hhs:nlsclt:2014_011
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    References listed on IDEAS

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    Cited by:

    1. Schmidt, Emily & Woldeyes, Firew Bekele, 2019. "Rural youth and employment in Ethiopia," IFPRI book chapters, in: Youth and jobs in rural Africa: Beyond stylized facts, chapter 5, pages yj109-136, International Food Policy Research Institute (IFPRI).
    2. Laurence Roudart & Benoît Dave, 2014. "Family Farms and Investment Capacities," ULB Institutional Repository 2013/179469, ULB -- Universite Libre de Bruxelles.
    3. Bezabih, Mintewab & Gebreegziabher, Zenebe & GebreMedhin, Liyousew & Kohlin, Gunnar, 2010. "Participation in Off-Farm Employment, Risk Preferences, and Weather Variability: The Case of Ethiopia," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95784, African Association of Agricultural Economists (AAAE).
    4. Nkechi S. Owoo, 2016. "Determinants of choice of economic sector in the non-farm economy in Ghana," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 5(1), pages 31-54.

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    More about this item

    Keywords

    Non-farm; off-farm; non-agriculture; income diversification; Ethiopia;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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