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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/982

Title: FARM HOUSEHOLDS LABOR SUPPLY TO OFF FARM ACTIVITIES IN ETHIOPIA
Authors: ABEBE, DAMTE
Advisors: Dr. Tassew W/Hanna
Copyright: 2002
Date Added: 8-May-2008
Publisher: Addis Ababa University
Abstract: Farm households in Ethiopia are participating in off farm activities to supplement their farm income. Despite the importance of off farm income to the farmers less attention was given to the sector. There is also little empirical evidence on the off farm labor supply behavior of farm households in Ethiopia. Understanding the factors that affect the off farm work decisions is very important for rural development in general and farmers in particular. Therefore this paper tries to see the off farm participation decision and labor supply behavior of farm households in Ethiopia. It uses the 1999 Ethiopian rural household survey conducted by the department of economics of Addis Ababa University in collaboration with the US AID. The bivariate probit and Tobit models are used to analyze the data. The results of the study indicated that various individual and farm characteristics affect the off farm work participation and labor supply decisions of farmers. Of the human capital variables, education of the household head does not affect the off farm work decisions of farmers. It increases the return on the farm. But average schooling of the family positively affects the off farm labor supply of males. The off farm wage rate is significantly affected by the level of schooling of the household members and is more important for female members than males. The other human capital variables included in the study, farm experience, handicraft training, and health status of the family are important factors that affect the off farm work decisions of farm households. The availability of financial sources has a significant impact on farmers’ decision to engage in the sector. The negative effect with land size shows that poor and landless households will be benefited from the sector.
Description: A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN ECONOMIC POLICY ANALYSIS IN ECONOMICS DEPARTMENT
URI: http://hdl.handle.net/123456789/982
Appears in:Thesis - Economics

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