Bezu, Sosina and Barrett, Christopher B. (2010): Employment dynamics in the rural nonfarm sector in Ethiopia Do the poor have time on their side?
Download (292Kb) | Preview
We study rural employment transitions in Ethiopia between farming and both low- and high-return nonfarm employment. We find that initial asset holdings and access to saving and credit are important factors for transition into high-return rural nonfarm employment and that households’ participation in high-return rural nonfarm activities is robust to their experience of health shocks. However, shocks that affect their wealth or liquidity may trigger descents into low-return nonfarm employment. On the other hand, shocks that reduce agricultural income motivate transitions into high-return rural nonfarm employment.
|Item Type:||MPRA Paper|
|Original Title:||Employment dynamics in the rural nonfarm sector in Ethiopia Do the poor have time on their side?|
|Keywords:||rural nonfarm; income diversification; employment transitions; Ethiopia; shocks|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D13 - Household Production and Intrahousehold Allocation
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor
|Depositing User:||Sosina Bezu|
|Date Deposited:||05. Jan 2012 20:11|
|Last Modified:||13. Feb 2013 02:34|
BARRETT, C. B., BEZUNEH, M. & ABOUD, A. (2001) Income diversification, poverty traps and policy shocks in Cote d'Ivoire and Kenya. Food Policy, 26, 367-384.
BARRETT, C. B., BEZUNEH, M., CLAY, D. C. & REARDON, T. (2005) Heterogeneous constraints, incentives and income diversification strategies in rural Africa. Quarterly journal of international agriculture 44, 37-61.
BEVAN, P. & PANKHURST, A. (1996) A Social Analysis of Fifteen Rural Economies in Ethiopia. Overseas Development Administration, UK.
BLOCK, S. & WEBB, P. (2001) The dynamics of livelihood diversification in post-famine Ethiopia. Food Policy, 26, 333-350.
BRUCE, D. (2000) Effects of the United States tax system on transitions into self-employment. Labour Economics, 7, 545-574.
CARRASCO, R. (1999) Transitions to and From Self-employment in Spain: An Empirical Analysis. Oxford Bulletin of Economics and Statistics, 61, 315-341.
CORRAL, L. & REARDON, T. (2001) Rural Nonfarm Incomes in Nicaragua. World Development, 29, 427-442.
DA SILVA, J.G. & DEL GROSSI, M.E. (2001) Rural Nonfarm Employment and Incomes in Brazil: Patterns and Evolution. World Development, 29, 443-453.
DE JANVRY, A. & SADOULET, E. (2001) Income Strategies Among Rural Households in Mexico: The Role of Off-farm Activities. World Development, 29, 467-480.
DEININGER, K., JIN, S. Q. & SUR, M. (2007) Sri Lanka's rural non-farm economy: Removing constraints to pro-poor growth. World Development, 35, 2056-2078.
DERCON, S. & KRISHNAN, P. (1996) Income Portfolios in Rural Ethiopia and Tanzania: Choices and Constraints Journal of Development Studies, 32, 850-875.
DUNN, T. & HOLTZ-EAKIN, D. (2000) Financial Capital, Human Capital, and the Transition to Self Employment: Evidence from Intergenerational Links. Journal of Labor Economics, 18, 282-305.
FAIRLIE, R. W. (1999) The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment. Journal of Labor Economics, 17, 80-108.
KUNG, J. K. S. & LEE, Y. F. (2001) So what if there is income inequality? The distributive consequence of nonfarm employment in rural China. Economic Development and Cultural Change, 50, 19-46.
LANJOUW, P. (2001) Nonfarm employment and poverty in rural El Salvador. World Development, 29, 529-547.
LAY, J., MAHMOUD, T. O. & M'MUKARIA, G. M. (2008) Few Opportunities, Much Desperation: The Dichotomy of Non-Agricultural Activities and Inequality in Western Kenya. World Development, 36, 2713-2732.
LIEDHOLM, C., MCPHERSON, M. & CHUTA, E. (1994) Small Enterprise Employment Growth in Rural Africa. American Journal of Agricultural Economics, 76, 1177-1182.
MADDALA, G. S. (1983) Limited-dependent and qualitative variables in econometrics. Econometric Society monographs in quantitative economics. New York.
MALONEY, W. F. (2004) Informality Revisited. World Development, 32, 1159-1178.
MANDELMAN, F. S. & MONTES-ROJAS, G. V. (2009) Is Self-employment and Micro-entrepreneurship a Desired Outcome? World Development, 37, 1914-1925.
MATSUMOTO, T., KIJIMA, Y. & YAMANO, T. (2006) The role of local nonfarm activities and migration in reducing poverty: evidence from Ethiopia, Kenya, and Uganda. Agricultural Economics, 35, 449-458.
MEAD, D. C. & LIEDHOLM, C. (1998) The dynamics of micro and small enterprises in developing countries. World Development, 26, 61-74.
NARGIS, N. & HOSSAIN, M. (2006) Income dynamics and pathways out of rural poverty in Bangladesh, 1988-2004. Agricultural Economics, 35, 425-435.
REARDON, T., TAYLOR, J. E., STAMOULIS, K., LANJOUW, P. & BALISACAN, A. (2000) Effects of non-farm employment on rural income inequality in developing countries: An investment perspective. Journal of Agricultural Economics, 51, 266-288.
VAN DEN BERG, M. & KUMBI, G. E. (2006) Poverty and the rural nonfarm economy in Oromia, Ethiopia. Agricultural Economics 35, Supplement 3, 469-475.
WOLDENHANNA, T. & OSKAM, A. (2001) Income diversification and entry barriers: evidence from the Tigray region of northern Ethiopia. Food Policy, 26, 351-365.