Human Resource Economics

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Social Security and Labour Supply in Ethiopia
(A.A.U, 1998-05) Don, Melaku; Mulat, Teshome
This Paper attempts to see the effect of social security on labor supply using traditional labor force participation model application of a log it regression to the survey data yields results that go counter to theory. the availability of Pension income does not reduce labor force participation rates. it is also Found. That as age increases, Participation in the labor force is significantly reduced for women than men and. Also for blue collar jobs than white collar ones. This result has a Policy implication that there is a need for retirement age discrimination act by sex and by type of job. Legit models were ,Estimated for different age groups and it is found that there is no problem that arises due to aging or health, Which are the main determinants in setting a retirement age, Until age 60 to participate in the labor Force it is also found that the Probability to participate in the labor force reduces by 0.09 if one goes from age group of 56-60 to the age group of 61-65.
Human Resource Development and Economic Growth in Ethiopia
(A.A.U, 1997-06) Walelign, Netsanet; Bedri, Abdulhamid (Dr)
Human resources development has long been considered an important factor in economic growth. This study examines the contribution of human resources in Ethiopia's economic growth. This is accomplished by entering education and nutrition (as proxies for human resources development) apart from physical capital and labor in the growth equation by taking the 28 years time period from 1967/68 to 1994/95. A long run static and a short run dynamic (error correction) models are employed to observe the contribution of human resources. The results obtained indicate that in the period under reference education enters positively and significantly whereas nutrition enters positively but insignificantly in explaining the growth in output.
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 Impacts of Demographic and Economic Variables on the Rural Household Decision of Children Primary Schooling: Evidence from Four Kebeles around Bako Town in West Shoa Zone
(A.A.U, 2005-07) Dandena, Kumsa; Mulat, Teshome (Professor)
Under a given education supply, household demand for child schooling is very important. Particularly, in rural areas where the child work contribution is commonly high, investigating the impacts of demographic and economic variables enable to understand the demand side determinants of schooling for males and females in detail. This paper investigates the primary schooling of 455 children of ages 7 to 18 years from 155 randomly selected households in four Kebeles around Bako Tow in April 2004. The central assumption is that child work - increasing household resources slow down schooling and vice versa in missing markets. The pro bit estimates of the reduced form schooling equation show greater systematic determination by the observed household characteristics for females than they do for males in general. This indicates greater effective choice between work and schooling for the former. On the other hand, there is no statistically different gender disparity in rates of schooling. This calls for further socio logical investigations to find out why a number of male children are out of school. Next, with too meager incidence of paid work, especially for the children who are too young to be employed on international standard, the violation of child rights, in terms of right to primary education, is found to be associated with household workloads for female children. Whether excessive work compounds the problem in terms of health and psychological influences should be a future research agenda in order to reveal the incidence of the unacceptable forms of child labor. With regard to age categories as could be expected, there are distinct degrees of systematic relationships between child schooling and most variables as we move across age groups. Therefore, interventions that are meant to increase child schooling have to be aware of such differential responses across sex and age categories.
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.
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.
Valuing the Benefits of Improved Lake Quality: An Application of Choice Experiment to the Case of Lake Awasa
(A.A.U, 2006-07) G.selassie, Girma; Yesuf, Mahmud(Dr.)
The Lake environment provides many goods and services depending on the different attributes of the surrounding environment. In this paper, we identified, among other things three attributes, i.e. , two environmental attributes (Tilapia fish stock, Surrounding forest cover) and one monetary attribute (fishing permit). We, Carry out a Choice experiment among fishermen of Awassa Lake to estimate the value of improvement of the lake quality in general in terms of the attributes selected. We analyzed the data using Multinomial logit model and derive important issues concerning the preferences of fishermen of Lake Awassa. Results confirm that fishermen of Awassa Lake have high levels of environmental concern and are willing to pay for the improvement of the lake environment in terms of the attributes selected in the Choice experiment. According to our result the most preferred attribute is Tilapia stock and it is also a significant attribute and therefore the most urgent action is to firstly to prevent further depletion of the Tilapia fish stock of the lake. This is also reflected in their higher willingness to pay for Tilapia fish stock improvement. Very low willingness to pay is observed for improvement in the degraded surrounding vegetation and forest cover of the lake. The marginal willingness to pay(implicit prices) for the environmental attributes Tilapia fish stock and Surrounding forest cover were estimated. The mean WTP for Tilapia fish stock improvement is estimated to be 8.83 birr per month. However, mean willingness to pay for improvements in the surrounding forest cover is almost insignificant. Compensating surplus estimates which reflect overall willingness to pay for a change from the status quo (current situation) to alternative improvement scenarios were also calculated. The estimate for the high impact scenario was estimated to be 31.42 birr, for medium impact scenario 28.62 birr and for low impact scenario it was 18.62 birr per month.
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.
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.
Household's Willingness to Pay for Improved Waste Management: The Case of Mekele City, Tigray Region.
(A.A.U, 2009-01) Hagos, Dagnew; Mekonnen, Alemu (Dr.)
The generation of solid waste has become an increasing environmental and public health problem everywhere in the world, particularly in developing countries. In Mekelle city, solid waste management is mainly provided by the municipality and it has been measured and evaluated always based on the role and performance of the service provider (supplier of the service) while demand side i.e. Willingness To Pay (WTP) of the residents is ignored. Therefore, the aim of this paper is to estimate the household's willingness to pay for one aspect of better environmental quality (improved solid waste management) in Mekelle city. [n this study, contingent valuation method (C VM) is used as a method of valuation. The empirical models adopted by this study to determine the factors that influence WTP of household heads for improved solid waste management are, To bit and Porbit models. The results of the Probit model revealed that probability of WTP of households for improved solid waste management are significantly related to three explanatory variables and all of the signs of these three variable coefficients (coefficients of income, awareness of environmental quality and age) make intuitive sense and significant at 1 %, 5% and 5% respectively. [n the To bit model, 8 out of 12 variables have statistically significant impact on the amount of WTP for improved solid waste management system. The current payment for sanitation is below the WTP of the residents and the mean WTP found in this study can be used for decision making in determining the service Fee for improved solid waste management.
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.
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.
Returns to Education and Male-Female Wage Differential in Ethiopia: An Analysis of Urban Household Survey
(A.A.U, 1998-05) Alebachew, . Abebe; Yoseph, Getachew ( Ato)
The main objectives of this study are to estimate and analyse the private returns to education and to look into the existence of gender discrimination in the Ethiopian Lab our Market. The methodologies used to that end are the OLS, the Heckman's two-step and the MLE two-step Procedures. The main findings of the study are the following . Educational investment is paying to an individual. One year of additional schooling, primary, secondary and higher education is found to have a return of 10, 5, 10.6 and 31 percent respectively. These estimates show that the private return to primary education is the lowest. No significant difference is observed between the private returns to males and females indicating that the existing disparity in enrolments is not explained by returns to education. Family background in the form of maternal education has been found to have significant impact on chldren's earnings implying that females' education has trans generational effect. The observed wage differential in the Ethiopian Labour Market is mostly explained by differences in productivity enhancing attributes rather than by discrimination. There are important policy implications to be drawn. Mere expansion of primary education may not result in improving the living standards and efforts should be made to revitalise its quality and relevance to the world of work. The government's intention to introduce costs haring arrangements at higher education is an optimal policy response to existing economic incentives. Improving female enrolments not only will reduce the wage differential between males and females but will also have a long-run economic benefit. So, resources should be committed to that end.
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.
Female and Male Wage Differentials in Addis Ababa a Case Study in Four Factories
(A.A.U, 1998-06) Haile, Tsehay; Aredo, Dejene (Dr)
In this study we used two methods to. estimate the extent of labor our market discrimination. The sample is taken from four factories in Addis Ababa. The first method is descriptive statistics, which estimate whether there is wage difference between female and male. The findings of the study indicate that there is wage difference, which is mainly attributable to difference in relevant variables and to a lesser extent due to sex difference. Consistent with the above result the second method, i.e., Oaxaca (1973) and Oaxaca- Ransom (1994) also indicated the existence of wage difference. This method decomposes log of monthly gross wage differentials Into labor market discrimination, the cause of which is difference in sex, and difference in relevant ones. In method of Oaxaca (1973) using female wage as a base, labor market discrimination is found to be higher . while using male wage as a base the difference between relevant variables caused larger parts of wage differentials. In method of Oaxaca -Ransom (1994) the difference between relevant variables caused larger parts of wage differentials. Both descriptive and wage decomposition indicate the existence of wage difference. The majority part of this difference is explained in both methods by relevant variable difference.
The Impact of Education on Allocative and Technical Efficiency of Farmers: The Case of Ethiopian Small Holders
(A.A.U, 1997-06) Asfaw, Abay; Admassie, Assefa (Dr.)
With the growing interest in human capital theory, analyzing the impact of education on efficiency has been given special emphasis. this study first testes the celebrated hypothesis that 'traditional farmers are efficient but poor'. the result of the stochastic profit frontier function does not support this hypothesis in the Ethiopian case. the result shows that there are considerable amount of deviations from the optimal profit efficiency level. it specifically shows that the mean level of profit efficiency in the sampled fanners is 54.0 percent. this implies that there is 46.0 percent profit inefficiency in the sampled farmers. next it is tried to test the hypothesis of equal allocative and technical efficiency of educated and illiterate farmers by using the modified Y-L profit function model under various linear restrictions. the results reveal that educated farmers are relatively and absolutely more efficient than illiterate fanners. this implies that at the existing level of factor endowments and technology there is a potential to increase agricultural output by expanding education and consequently by making illiterate farmers to operate closer to the efficiency level achieved by their educated neighbors. It is also shown that education increases not only the efficiency of farmers but also the probability of farmers to adopt improved inputs such as fertilizer. the multinomial probit analysis also shows that education and environment variables are substitutes in modem areas and complementary in traditional environments. this suggests that expansion of schools and increasing enrollment rates in rural areas have higher payoff than in modem areas at least in increasing the probability of farmers to adopt fertilizer input.
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.
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.
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.

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