The Impact of Off-farm Activities on Rural Household Income in Wolaita Zone, Southern Ethiopia
Journal of World Economic Research
Volume 8, Issue 1, March 2019, Pages: 8-16
Received: Apr. 24, 2019; Accepted: Jun. 2, 2019; Published: Jun. 12, 2019
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Authors
Ayana Anteneh Astatike, Department of Economics, Wolaita Sodo University, Wolaita Sodo, Ethiopia
Ermias Ganamo Gazuma, Department of Economics, Wolaita Sodo University, Wolaita Sodo, Ethiopia
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Abstract
This study presents an empirical analysis of the impact of participation in off-farm activities on household income level in Wolaita zone, southern Ethiopia. The impact of participation in off-farm activities on household income was estimated by using Heckman two-step model. The results of Heckman’s two-step model indicated that participation in off-farm activities has a significant impact on annual income of the households. Moreover, the study identified the factors that affect participation of households in off -farm activities. Consequently, the probit model result revealed that age of the household head, sex of the household head, marital status, distance to the nearest market, agro-ecological zone, credit access, livestock ownership, the amount of farm income, and having mobile phone were key factors that influence participation of households in off-farm activities. With regard to results of Heckman’s two-step model, the participation in off-farm activities, education level of the household head, and agro-ecological zone were found to be the main factors that affect households’ total income level. The positive and significant effect of off-farm activities on total income of the rural households calls for policy measures in order to pave the way to expand off-farm activities so as to bring a substantial contribution to the living standard of the rural society.
Keywords
Off-farm Activities, Household Income, Heckman Two-Step Model, Wolaita Zone, Ethiopia
To cite this article
Ayana Anteneh Astatike, Ermias Ganamo Gazuma, The Impact of Off-farm Activities on Rural Household Income in Wolaita Zone, Southern Ethiopia, Journal of World Economic Research. Vol. 8, No. 1, 2019, pp. 8-16. doi: 10.11648/j.jwer.20190801.12
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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