Human Resource Economics

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Browsing Human Resource Economics by Subject "Economics Resource"

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    Determinants of Household Income Diversification and its Effect on Food Security Status in Rural Ethiopia: Evidence from Ethiopia Longitudinal Rural Household Survey
    (2014-06) Yizengaw, Bassie; Alemu, Atelaw (PhD)
    This study examines the determinants of household income diversification and its effect on food security status in rural Ethiopia. To accomplish this, we use household panel data from ERHS approximately 896 households for three years data with five years gaps. Analytical tool used were both descriptive statistics and econometric models. In descriptive analysis, from the sample households, the level of household income diversification in rural Ethiopia is 39%.Income diversification of households based on share of income from each sources show that, the share of crop income takes the highest share which accounts 45% of the total household income followed by livestock income which accounts 41% of the total income. The remaining 14% of the household income generates from off-farm activity. In econometrics model, we use fixed and random effects models to remove the effect of unobserved household characteristics that may be correlated with household income diversification behavior. We also employed instrumental variable in combination of 2SLS to address the possibility of endogenity of the level of income diversification in food security status equation. To examine the determinants of level of household income diversification we used random effect model based on the Hausman test result. The regression result suggests that number of adult household members, access to credit, farm size and livestock holding determines the level of income diversification of households. Positively and significantly while age of the household head, distance from the nearest market, households with higher education and availability soil conservation on their plot determines negatively and significantly. Finally we analyzed the effect of the level of household’s income diversification on food security status. To this end, we deliberately used fixed effect model to sweep out time invariant unobserved factor that might be correlated with the instruments. The finding of the study revealed that income diversification of households should be given more focus and attention by policy makers in effort to reduce food insecurity status of households
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    Economic Valuation of Irrigation Water in Bahir Dar Zuria Woreda, Ethiopia: The Case of Chilal Abay, Negida and Upper Andasa Irrigation Schemes
    (Addis Ababa University, 2015-06) Anteneh, Ayana; Berhanu, Wassie (PhD)
    This study attempts to determine the economic value of irrigation-water by eliciting farmers’ willingness to pay (WTP) using contingent valuation method in Bahir Dar ZuriaWoreda, Ethiopia. Single bounded and double bounded dichotomous choices with a follow up open ended questions were employed. Primary data obtained from 197 randomly sampled household heads was analyzed using both descriptive statistics and Econometric models. The descriptive analysis indicates that the mean annual income of the irrigators is twice more than that of non-irrigators. And out of the total respondents 95 percent of them are dissatisfied with the existing irrigation water supply. In this study, Probit and Bivariate Probit model was used to measure WTP and to determine the factors that influence the variation in WTP. To identify the basic determinants of maximum WTP, we also used Tobit model. The result from the Probit model revealed that the bid level, farming income, education, family size, land size, having pumping motor, sex of the household heads, and dissatisfaction with the existing irrigation water supply are significant factors that affect respondents’ WTP for the improvement of the current irrigation schemes. In the Tobit model households' income, family size, land size, and having pumping motor are found to positively and significantly affect households' maximum willingness to pay. In the Bivariate Probit model result, off farm income, initial bid and follow-up bid were found to have a negative and significant effect on the households' probability of accepting that bid. In this model variables such as income, land size, having pumping motor and dissatisfaction with the existing irrigation water supply have a positive effect on the households’ probability of WTP. The mean willingness to pay for the provision of improved irrigation water is found to be 674.5 and 579 Birr per year/0.25 ha from the double bounded dichotomous and open-ended questions, respectively. The estimated aggregate willingness to pay for improved irrigation water supply using the DBDC and open ended questions is found to be about birr 15,703,709 and 13,480,278 per year, respectively. Among the surveyed households, 99 percent have shown their willingness to pay if there is an improvement in existing irrigation water supply. Thus, it may be a good indicator for the concerned body to invest for expanding the current irrigation projects and introducing proper irrigation water pricing.