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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Ayana Anteneh Astatike, Department of Economics, Wolaita Sodo University, Wolaita Sodo, Ethiopia
Ermias Ganamo Gazuma, Department of Economics, Wolaita Sodo University, Wolaita Sodo, Ethiopia
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.
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.
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