Human Resource Economics

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Analyzing Household Vulnerability to Climate Change and Adaptation Options: Evidence from Adama and Lume Woredas, Ethiopia.
(A.A.U, 2010-06) Taye, Bedaso; Mekonnen, Alemu (Dr.)
The study assesses the extent of household vulnerability to climate change by applying Vulnerability as Expected Poverty (fIEP) approach. The VEP approach is based on estimating the probability that a given shock or set of shocks moves household consumption below poverty line or force them to stay there if they are already below poverty line. The data is collected from rural farming households in Adama and Lume Woredas of East Shewa zone during 2009 production season. The result shows that about 68 percent of farmers are vulnerable to poverty, while 62 percent of them are observed to be poor. A bout 52 percent of the households are vulnerable to poverty due to low consumption prospect and 16 percent of them are vulnerable due to high consumption volatility. The study also indicates that change of rainfall and temperature from long run averages, frequency of drought and soil characteristics are major reasons for farmers' vulnerability to poverty. On the other hand, education of head, livestock and land size, irrigation size, quantity of fertilizer used and number of extension contacts are found to reduce household vulnerability to climate change. Proximity to facilities such as road and market also reduces farmers' vulnerability. But, higher family size and exposure to non climatic shocks such as death of household head and input price rise increase vulnerability. On top of that, the estimated incidence of poverty is less than the fraction of population that is vulnerable to poverty. This calls for differential intervention for poverty reduction and poverty prevention, in addition to consumption stabilization and increasing measures. On the other hand expansion of extension services, irrigation practices, non farm income opportunities, improving farmers' access to fertilizer use and increasing household capacity to cope or mitigate shocks and risks are important intervention areas to reduce vulnerability.
Challenges of Healthcare Financing: Economic and Welfare Effects of User Fees in Urban Ethiopia
(Addis Ababa University, 2007-06) Guda, Amarech; Mulat, Teshome (Prof)
This study examines the determinants of health care provider choice of urban households of Ethiopia. Particularly, it investigates the effects of user fees on the demand for health care by different segments of socio-economic group using multinomial logit model. The data source of the study is the Ethiopian Urban Socio-economic Survey conducted in 2004 by the Department of Economics of Addis Ababa University in collaboration with the Department of Economics, University of Goteborg in Sweden Cost recovery mechanisms were introduced based on the principle that health care demand in developing countries is price inelastic; so that more resources can be generated for the health sector without reducing the demand by the poor. But the results of this study reveal that for a given rise in health care cost, the poor will reduce the demand for health care significantly in greater proportion relative to the better off. In other words an increase in user fee is likely to drive out the largest portion of the poorest households from receiving medical care. The study also shows the poor are required to pay significantly greater proportion of their income to health care than the better off in order to get treatment. This will aggravate the existing inequality in access to basic health care services. Hence, even though the principle of cost recovery had been advocated as alternative means of health care financing in most developing countries, increasing user fee may drive the poorest population out of health care market or deepen their economic situation unless some reliable protective measures are taken
Demand for Public and Private Health Care Services in Addis Ababa
(A.A.U, 2006-07) Hailegiorgis, Samuel; Bedri, Abdulhamid (Dr)
The study is ill tended to investigate the factors that influence the demand for private and public health services ill Addis Ababa. It is undertaken with the view of adding to the existing meager research ill the area. It used the Welfare Monitoring Data 2004 collected by The Central Statistical Authority of Ethiopia. It adopted the multinomial logiest regression to measure the significance of the different individual, household and structural and supplier variables ill the demand for health services. Both the descriptive and the econometric analysis revealed different individual, household and structural vandals do affect the demand for hearth services from both types of providers. one profound result of the study is that still the majority of the residents of Addis Ababa cannot pay for health care and hence the cost recovery scheme in the case of public health provision should be revisited. Further the importance individuals attach to quality in all types of providers should urge the government as well as private providers to give sufficient attention to quality considerations.
Determinants of Female Labour Force Participation in Urban Ethiopia
(A.A.U, 1996-06) Antenhe, Amsaya; M. Warner, James (Dr.)
Although wage labour opportunities are scarce for both mean and women in Ethiopia, female participation rates remain lower than. male participation rates and females are dis-proportionately concentrated in certain occupations of the labour force . Indeed, the participation of women in all aspects of the development process is very limited. However, little is known about the factors which are responsible for such a low level of female employment in Ethiopia . To this end, this study was designed to examine the determinants of female labour force participation in urban Ethiopia using data from the 1994 Urban Household Survey. The following methodologies are employed in this study. Different estimation methods (descriptive statistics, the logit and the probit models) are used to estimate the coefficients with respect to age, education, fertility, migration status marital status, and income of household head. It is found that female lab our force participation is positively related to age, education, and migration status , where as it was negatively associated with fertility, marital status , and income of the household head. Moreover, the analysis of the determinants of Female labour force participation which employs both log it and Probit models identifies age, fertility, marital status, migration status and education as the most important Factors responsible for the low level of female participation In the work force in urban Ethiopia. Based on the findings, the study recommends that extensive Family planning programmers are necessary in. order to increase the educational status of women by releasing women from Household responsibilities associated with child bearing.
Determinants of Household Decision to Adopt Fuel Efficient Technology: Evidence from Improved ("MIRT") Stove Technology a Case in Adea Woreda, East Shoa Zone
(A.A.U, 2007-03) Woubishet, Dawit; Demeke, Mulat (Dr.)
Energy is vital for economic development for both developed and developing countries. The need for energy in developed nations is a question of comfort but for developing nations it is a question of survival and poverty. The needs' for energy in developing countries meet from biomass resource. these resources are heavily utilized and it has adverse effect on the environment and natural resource. And it is directly used by inefficient stoves; this direct burning of biomass has impact on the health of the poor (especially women and children) , income, household environment and resource Improvement was made but success of many interventions in dissemination of efficient improved stoves in both rural and urban settings are not successful due to top down and supply nature of the programs, technology centered and lack (if compatibility with the beneficiary groups. Therefore, those factors indicate the need for existing research to start from the target group not on the technology. The main objective of this study is to analyze the determinant factors that affect household decision to adopt fuel efficient improved stove technology and to acquire information about the technology. Evidence taken from improved (‘Mirt ") stove technology in Adea" wereda, both in rural and urban settings. The study take in to consideration the socioeconomic, demographic, dwelling characteristic, information diffusion and attitudinal variables of the households in the study area. The increasing scarcity of biomass and the increment of the number of people who use biomass, particularly fire wood, threaten the capability of the country even to maintain the already existing low income and living standard (if the people. therefore, the need for adopting improved ‘mirt" stove not only enables the households to use fuel efficiently, but also enable them to curb the problems caused by using traditional and open fire stoves as well as biomass energy related problems. [I can also mitigate the impacts on the users' health. and the overall environment and natural resources brought by using those traditional and open fire stoves. With two conditional equations, that is information and adoption equation. This study result reveals that improvement in socio economic conditions of the people have positive impact in acquisition and access information in urban and rural households. Moreover, the result supports the "energy Ladder" hypothesis as theoretical and functional useful framework to explain the fuel use and improved technology adoption in the study area. The finding also reveals socioeconomic improvements also have direct and Significant impact on adoption decision. This .finding also reinforce the role of government and non government organization to playa major role in provision and diffusion of information and enhal1ce the adoption decision of the people to protect the country natural resource and to resolve environmental problems that arise du e to excessive utilization (if biomass resources.
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
Determinants of Internal and out Migration of Physicians from the Public Health
(A.A.U, 2008-10) Tefera, Biruke; Bedri, Abdulhamid (Dr)
Physicians are key personnel in the health care system. Currently there is a worldwide shortage of health workers, particularly physicians. In some countries this shortage of physicians is aggravated by migration. Ethiopia is one of those countries who face severe shortage of physicians. With the advent of private health sectors, the movement and migration of physicians From public to private sector becomes a common phenomenon. Moreover, there is a mass exodus of physicians outside Ethiopia. Because of these internal and external migrations of physicians, the service delivery of the public sector is highly affected. But this phenomenon is given little attention. The objective of this study is to find out the root causes of migration and its impact on service delivery. To do this research both primary and secondary source of data were used. Descriptive and econometric techniques had been employed for analysis. A pro bit estimation was used to analyze the determinants of migrate on. The findings of the study show that low salary and remuneration, unavailability of drugs, lack of professional resources and poor quality of management were the major push factors for internal migration. The significant pull factors for internal migration were found to be the opposite of push factors of internal migration. Concerning out-migration the study revealed that low salary, lack of incentives, poor quality of management, and feeling de-motivated by poor health care infrastructure, resources and facilities were the main endogenous push factors. From endogenous pull factors better salary, provision of different incentives, better opportunity and quality of education; and sophisticated health facilities, in Infrastructure and resources were found to be the most important attracting factors. Low quality of life in Ethiopia and political repression were found to be the most significant exogenous push factors of migration. The opposite of these factors were found to be the most influential exogenous pull factors.
Determinants of the Nutrition and Health Status of Children in Rural Ethiopia: A Longitudinal Analysis
(Addis Ababa University, 2006-07) Ayalew, Daniel; Woldehanna, Tassew (PhD)
This study tried to see the determinants of nutritional status of children using longitudinal data from fifteen villages of rural Ethiopia. An attempt was also made to see if there are any significant interactions between mother’s education and community characteristics. By employing random effects procedure, both height-for-age and weight-for-height z-scores were regressed on various private and public determinants. The results show that age of the child, parental height and primary education, existence of permanent partner to the household head, household size and composition, and safe water source of the household are an important determinants of child nutritional outcomes. However, most of the interaction terms between mother’s education and community variables (such as access to healthcare and the communities’ safe source of water) failed to be significant implying partly the unimportance of these community variables and partly the low level of maternal education in the sampled households. But for the significant term in the WHZ regression (i.e the interaction between access to health care and mother’s attainment of at least a year of primary education but not higher), one may argue that having at least a year of primary education is a substitute to access to health care
Determinants of the Nutrition and Health Status of Children in Rural Ethiopia: A Longitudinal Analysis
(A.A.U, 2006-07) Ayalew, Daniel; Woldehanna, Tassew (Dr.)
This study tried to see the determinants of nutritional status of children using longitudinal data from fifteen villages of rural Ethiopia. An attempt was also made to see if there are any significant interactions between mother's education and community characteristics. By employing random effects procedure, both height-for-age and weight for- height z-scores were regressed on various private and public determinants The results show that age of the child, parental height and primary education, existence of permanent partner to the household head, household size and composition, and safe water source of the household are an important determinants of child nutritional outcomes. However, most of the interaction terms between mother's education and community variables (such as access to healthcare and the communities' safe source of water) failed to be significant implying partly the unimportance of these community variables and partly the low level of maternal education in the sampled households. But for the significant term in the WHZ regression (i.e the interaction between access to health care and mother's attainment of at least a year of primary education but not higher), one may argue that having at least a year of primary education is a substitute to access to health care.
Determinants of Voluntary Environmentally Sound Technology Adoption and an Assessment of Dynamic Inconsistency in Adoption Decision in Industry in Ethiopia
(A.A.U, 2010-05) Tafesse, Bernabas; Mekonnen, Alemu (Dr.)
The assessment of the determinants of the adoption of ESTs and the reasons for not adopting and continuity are explored in this paper. Towards the first question, four dimensions of possible determinants were identified. The variables that came out as most significant in the adoption decision are the ones pertaining to the plant characteristics of the firm. Specifically, the variables in this category are: the environmental commitment of the firm, the form of ownership of the firm as either foreigner owned or not and its arrangement as being either public or private, the technological capability of the firm, the number of years it has been in operation, and the number of employees. This underlines that the diversity of the firms plays a role in determining the EST option they adopt and thus imply the need for environmental policy to account for the heterogeneity of the firms in its design and implementation. This was done using the ordered probit model following the hierarchical nature of the response variables. Towards the second question, the heckman pro bit selection model is used and the results explained in the principal agent framework suggest that the form of management, among other things, does come into play in determining whether the firm continues with ESTs or not once they are adopted. This suggests that incentives or more generally the efficiency of mechanism design determines the effective implementation of a venture embarked upon despite the saving potential promised, and in cases savings earned, following the adoption of the ESTs. This implies the need for environmental policy to take into consideration internal management issues for effective realization of the enviroru11ental policy objectives drawn.
Economic Analysis of Social Networks: Empirical Study on Selected Women Iddir in Addis Ababa
(A.A.U, 2000-06) Lemma, Teigist; Seyoum, Alemayehu (Dr)
By describing and singling out the economic features of Women Iddir, the study attempts to review and associate the literature on in formal insurance and social capital. It provides a framework of theoretical analysis and empirical results based on descriptive as well as econometric methods. The study brought out the uninterrupted social welfare service of Women Iddir that existed for about 60 years. Besides demonstrating its effective informal insurance service in Ethiopia, it reveals that age, education, premium and economic rational significantly explain the demand for funeral cover. Financial capacity and social rational influence efficiency of networks positively while reciprocity and membership to other forms of networks induce negative effect. Results indicate the existence of certain optimal level of informal insurance purchase by a risk averse person. It is found reasonable to discern that certain level of explicit and implicit economic rationale exist behind Women lddir that mostly are considered as altruistic, traditional, humanitarian, welfare, etc. Although networks are incepted in social and moral contexts, their resource base, welfare services and functions provide adequate justification to consider them as economic institution. Their informal nature and sustained service is the result of using mixed (non pure) strategies based on best alternatives, which are partial contract, partial economic rational and with strong reciprocal exchange and social objective. The exposure to non-home activities and recognition of wide range of risks enabled women to broaden the informal insurance cover. The non-marketable and efficient service offered by Women Tddir makes the potential of its substitutability far reaching. Instead, it has developed great potential to diversify the social welfare services if technical, material and financial backing is availed for them to develop and assume larger societal responsibilities. In spite of their own institutional development, recognition of Women Tddir's informal insurance/social welfare services deserves accounting their economic role in the society. Thus, studies on consumption and expenditure need to account their role in the households' economy and provide information for planning.
Economic Growth and Environmental Quality in Ethiopia: An Environmental Kuznets Curve Approach
(Addis Ababa University, 2017-06) Yeneneh, Gelagay; Berhanu, Wassie (PhD)
In an attempt to examine the growth-environment relationship in general, and in order to investigate an environmental Kuznets curve (EKC) for carbon dioxide (CO2) emission in particular, this study employs data spanning from 1981 to 2013. The Johansen co-integration test and error correction model (ECM) techniques were applied to capture both long-run relationships and short run dynamics in our system. The estimation results from these two techniques confirm the existence of EKC for CO2 emission in Ethiopia. In order to capture the effect of international trade, the study incorporates the ratio of manufacturing export to manufacturing gross domestic product (GDP) and the ratio of manufacturing import to manufacturing GDP. The estimated parameters for these two variables are found to have statistically significant effect. The econometrics procedure, however, does not show which factor actually contributes for a reduced emission. Thus, an increase in per capita income alone should not be considered as the solution of environmental problems. It needs environmental policies, regulations and/or standards in combination with strong institutions to enact the environmental policies. Hence, in the analysis of the growth-environment relationship, future research should focus on incorporating variables representing environmental policies, international trade, sectoral output composition of the economy or democracy.
Economic Implications of Climate Change in Ethiopia: A Computable General Equilibrium Analysis
(Addis Ababa University, 2011-06) Belayneh, Ashenafi; Ferede, Tadele (PhD)
Climate change has become one of the pressing problems worldwide as it affects socio-economic activities - agriculture being one of the most vulnerable sectors. Specifically, this study has attempted to evaluate the short-run economic impacts of climate change (change in the levels of temperature and precipitation) with a focus on the Ethiopian economy. In so doing, it uses a computable general equilibrium model based on the 2005/06 Ethiopian Social Accounting Matrix. The results show that climate change has a dampening effect on economic growth and many key macroeconomic indicators. Investment is the only macroeconomic variable that increases despite the changes in climate. It has also a negative impact on sectoral growth and trade, and the effect varies across agro-ecological zones. The findings further revealed that household livelihoods (measured in terms of income and welfare) have declined, and the effect is unevenly distributed across different household groups. The highest losses are likely to be incurred by the poor households that are residing in smaller urban centers. Thus, the results of the study calls for improved climate adaptation actions to reduce both economic decline and welfare deteriorations
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.
Economic Valuation of the Recreational Use Value of Babogayya Lake (Bishoftu Town): Application of the Individual Travel Cost Method (ITCM)
(Addis Ababa University, 2014-06) Daba, Amenu; Tufa, Adane (PhD)
There are many tourist attraction sites in Ethiopia. Bishoftu town, is located in Oromia Region, Eastern Shewa Zone, on the way from Addis Ababa to Adama and some 50 km away from Addis Ababa. This study analysis & shed light on the economic valuation of the use value of the Babogayya Lake (Bishoftu town) outdoor recreational by using the travel cost method. Both primary & secondary data types were used. For collection of the data both structured questionnaires’ and interviews were used. For analysis of collected data both Descriptive Statistical and Econometric analysis (count data regression model (Poisson model) were employed. The study estimated that the individual outdoor recreational demand (LnVrate= 0.5366- 0.000028tc), total annual recreational benefit of the site ($90,811,935.5959) and total annual consumer surplus of the site ($39,231,916.3559). Based on the study results possible policy implications were also provided
Education, Training and Agricultural Technology Adoption in Resource Poor Areas of North Wollo: The Case of Meket Woreda
(A.A.U, 1999-06) Tassew, Mulugeta; Demeke, Mulat (Dr)
Inspite of its important contribution to the Ethiopian economy at large, the performance of agriculture was disappointing for decades. Cognizant of this fact, Ethiopia is now implementing Agricultural Development-Led Industrialization (ADLI) strategy which concentrates on accelerating growth through disseminating better performing crop and livestock technologies to farm households. Differences on how quickly producers adopt such technologies can be explained by differences in human capital and differences in knowledge of the new technology. Having this idea in mind, a field survey was conducted in one of the resource poor areas of north wollo (Meket Woreda) to identify the factors that influence the use of improved crop technologies and ownership of livestock particularly cow and sheep among farmers in the woreda. This being the general aim of the Study, the chief objective was to see the impact of human capital variables on the adoption of these technologies. To this end, the probit model was fitted on primary cross sectional data collected from 144 farm households. An attempt is also made to see whether or not crop technologies are profitable or not by calculating the so called value cost ratio. The result obtained from the estimated models showed that the education level of household head, family size, participation in agricultural training programs and farm income significantly affect the adoption of fertilizer and/or improved seeds (Crop technologies). On the other hand, cow ownership is found to be influenced by total cultivated land, farm income and access to livestock credit. Similarly, sheep ownership is influenced by total cultivated land, age of household head, distance from main road and agro-climatic condition. The calculated value cost ratio indicated that income from barley production can be tripled if farmers apply the recommended rate of fertilizer on a hectar of land sawn with local variety of barley. Similarly, wheat production can be doubled if improved seed is mixed with fertilizer. Policies recommended from the findings of the study include infrastructual development dealing with education, strengthening agricultural training programmes and research activities and provision of livestock credit particularly to resource poor farmers. It is hoped that, such types of government action would improve agricultural production of the country in general and of the study area in particular.
The Effect of Climate Change Adaptation Strategy on Farm Household’s Welfare in Nile Basin of Ethiopia: Is there Synergy or Trade off?
(2016-06) Asmare, Fissha; Teklewold, Hailemariam (PhD)
Climate change is affecting different dimensions of human life. The effect is significant for rural farm households in Ethiopia. In response to this farmers use different adaptation strategies. However, there is a gap in knowledge on the effect of different adaptation strategies on farm household’s welfare. This study examines the effect of Crop Diversification (CD), as a climate change adaptation strategy, on farm household’s welfare in terms of farm income and demand for labor in Nile Basin of Ethiopia. The study also identified the main determinants of adopting CD. The study explore whether there is synergy or tradeoff between the effect of CD on household income and labor demand. The relationship between Farm household’s income and family labor demand are modeled by using Endogenous Switching Regression model (ESRM) containing household and farm characteristics including a set of geo referenced climate variables such as, temperature and growing season rain fall. The analysis is based on farm household data collected in 2015. The result indicates that, climate variables such as, the amount and variability of growing season rain fall and temperature are the most important factors affecting both household’s income, demand for labour and adoption of CD. The study also shows that adopting CD is more likely in areas characterized by low rain fall and high temperature. In addition to this the study indicates synergy on the effect of adoption of CD, a positive and significant effect in enhancing farm household’s income and reducing family labor demand. Adopters benefited more in terms of reduction in labor demand than their non adopter counter parts. The findings of this study confirms that using crop diversification is a win-win climate change adaptation strategy that provides double benefit both in terms of productivity improvement and labor reduction. Thus, the result suggests the adoption of CD in the Nile Basin of Ethiopia to improve the wellbeing of farm household’s and to build a resilient agricultural system for the catastrophic effect of climate change.
Environmental Resources Collection versus Children’s Schooling: Evidence from Tigray, Northern Ethiopia
(2011-06) Gebru, Bahre; Bezu, Sosina (PhD)
Previous studies on child labor and schooling in Ethiopia were general and did not distinctively show the adverse effect of natural resources scarcity on schooling. The objective of this paper is, therefore, to see the environmental resources collection and schooling relationship for children aged 7 to 18 years and see if there is any gender bias in schooling due to resource collection work. It uses a cross sectional data of 120 rural households from Enderta and Hintalo Wajerat woredas in Tigray, which represents one of the most environmentally degraded regions in Ethiopia. The two-Stage Conditional Maximum Likelihood (2SCML) estimation technique is employed to take care of endogeneity between schooling and resource work hours. The empirical analysis revealed that longer hours spent on environmental resources collection influences the likelihood of child schooling negatively. But we find no evidence about the gender based difference against girls’ schooling due to resource collection hours though they do often participate in resource gathering tasks. Among others, household head’s ability to read and write, owning large number of cattle and child age significantly increases the probability of collecting resources, the collection intensity and schooling likelihood while large sizes of cultivated land bear a negative effect on each outcome. The presence of more children in the 7 to 18 age category indicates the quantity (number of children) and quality (investment in child education) trade-off regarding parents’ decision to send their children to school. Provision of functional adult literacy programs to parents, timely collection of fodder resources from cultivated land, planting fodder-rich tree species, promoting collective agricultural work (“wofera”), introduction of flexible academic calendar and maintenance of the non-operating constructed water services can be important policy tools to reduce environmental resources collection time and improve the likelihood of schooling. Grass-root based experience sharing programs and awareness creation can also be worthwhile in this regard
Estimating Household Energy Demand for Rural Ethiopia using an Almost Ideal Demand System.
(A.A.U, 2008-07) Driba, Dawit; Yesuf, Mahmud(Dr.)
The paper attempts to estimate household energy demand (fuel Choice) using panel data for source of energy consumption . the study contributes to the contemporary literature a coherent view of energy demand (fuel choice) in rural step. The results of the finding suggests that as households’ total expenditure rises. Fuel option widens and fuel mix may change .they respond by increasing the number of fuels they use exhibiting fuel stacking (multiple fuel ) behavior but traditional / inferior fuels are relay entirely excluded from household energy mix it also suggests that households do not simply substitute one fuel for another due only to in come or expenditure increase , rather diversify their fuel consumption in a process of fuel stacking .to envisage this issue deeply , the study used econometric tools of the liner approximation almost ideal demand system (LAAIDS) with normalized prices to compute expenditure elastics and the multinomial log it model of household fuel choice behavior. The fuel stacking (energy Mix) model is based on the fact that in any point in time rural households use multiple sources of energy. Households make inter fuel switch and inter fuel substitution in optimizing their energy mix by adopting multiple fuel use (fuel stacking ) strategy in response to expenditure change. Rather than completely transiting to consumption of new fuels as the energy ladder hypothesis suggests. To prove this .we computed the expenditure or income elasticites of demand for inferior fuels and advanced fuels. The results of the study , that demand is expenditure elastic for advanced fuels and expenditure inelastic for traditional /inferior provides solid and consistent argument /evidence to the economics literature that despite the income constraints. Households prefer the normal good (advantage fuels )to the (inferior fuels. Furthermore ,the study used multinomial log it estimate of the determinants of households choice between inferior used fuels. Advanced fuels and mix of the two fuels to scrutinize the fuel stacking (multiple fuel use ) behavior of house holds in the energy mix model our result indicates that households total expenditure, the fact that the household’s is female headed total land owned by (land holding size), total number of livestock . Owned by household and family size square as predictor have positive coefficients of parameter estimate . this implies that the like hood of household’s choosing inferior fuels or mix of inferior and advanced fuels increases with increment in these predictors. How ever ,family size education of households head ,age households head .time spent on fuel collection and expenditure on advanced fuels have negative parameter estimates ,this indicated that it is less likely that households choose inferior fuel or mix of inferior and advanced fuels compared to advanced fuel with increase in these variable s as predictors. Our result indicates that fuel stacking or multiple fuel use is more applicable hypothesis for rural households of Ethiopia than the simplistic energy ladder hypothesis. In rural areas however , energy choice of households is constrained by lack of access to commercial fuels energy using equipment and appliances energy supply dependency and affordability as well as consumer preference and tastes. Therefore rural households have less poetical for fuel switching due to the a aforementioned factors and the existence of fuel wood which is gathered without any financial payment.
Factors Governing Enrollment and Public Expenditure on Education in Ethiopia
(Addis Ababa University, 1996-06) Awol, Elias; Bedri, Abdulhamid (PhD)
An effort is made to identify and determine the effects of the economic and demographic factors that influence the rapid growth of the educational system in Ethiopia. In doing this, the paper reviews the theoretical and empirical arguments for the rapid investment on education in the world. The analytical model constructed by Schultz (1985) to address the same problem is used. The model enables us to determine the effect of the factors identified to influence the growth of the system, in production-demand framework as constraints and conditions affecting the costs of, and demands for educational services. In the empirical estimation per capita income per adult, relative price of teachers, relative size of school age population and proportion of urban population are identified as the major factors governing the growth of the system. It is found out that the moderately growing income per adult, the decreasing relative price of teachers and the constantly growing urbanization significantly contributed to the growth of public expenditure on education. The rapidly growing school-age population squeezed and constrained the growth of public expenditure. On the other hand, from the components underlying this expenditure per school child, it is seen that the rapidly increasing enrolment with decreasing expenditure per student was made possible by; the relative substitution of physical resources by human resources and the absolute depreciation of physical resource intensity per student. In addition to these, the effect of economic and demographic factors on expenditure per school child by school levels and on the enrolment rates of males and females are also discussed. Finally, the implications of these findings on the existing education system of the country are also analyzed.

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