Scandinavian Working Papers in Economics

CLTS Working Papers,
Norwegian University of Life Sciences, Centre for Land Tenure Studies

No 11/14: Activity Choice in Rural Non-farm Employment (RNFE): Survival versus accumulative strategy

Sosina Bezu, Christopher B. Barrett and Stein Holden ()
Additional contact information
Sosina Bezu: Centre for Land Tenure Studies, Norwegian University of Life Sciences, Postal: Centre for Land Tenure Studies, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Aas, Norway
Christopher B. Barrett: Department of Applied Economics and Management, Cornell University, USA
Stein Holden: Centre for Land Tenure Studies, Norwegian University of Life Sciences, Postal: Centre for Land Tenure Studies, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Aas, Norway

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.

Keywords: Non-farm; off-farm; non-agriculture; income diversification; Ethiopia

JEL-codes: C23; D13; J24; J62

38 pages, First version: November 19, 2014. Revised: October 10, 2019.

Full text files

40206 PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Sarah Ephrida Tione ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:12:58.