Can urbanisation improve household welfare? Evidence From Ethiopia

Despite evolving evidence that Africa is experiencing urbanisation in a different way, empirical evaluations of the welfare implications of urban-development programs in Africa remain scant. We investigate the welfare implications of recent urbanisation processes in Ethiopia using household-level lo...

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Autores principales: Abay, Kibrom A., Tiberti, Luca, Woldemichael, Andinet, Mezgebo, Tsega G., Endale, Meron
Formato: Journal Article
Lenguaje:Inglés
Publicado: Oxford University Press 2022
Materias:
Acceso en línea:https://hdl.handle.net/10568/140418
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author Abay, Kibrom A.
Tiberti, Luca
Woldemichael, Andinet
Mezgebo, Tsega G.
Endale, Meron
author_browse Abay, Kibrom A.
Endale, Meron
Mezgebo, Tsega G.
Tiberti, Luca
Woldemichael, Andinet
author_facet Abay, Kibrom A.
Tiberti, Luca
Woldemichael, Andinet
Mezgebo, Tsega G.
Endale, Meron
author_sort Abay, Kibrom A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Despite evolving evidence that Africa is experiencing urbanisation in a different way, empirical evaluations of the welfare implications of urban-development programs in Africa remain scant. We investigate the welfare implications of recent urbanisation processes in Ethiopia using household-level longitudinal data and satellite-based nightlight intensity. We also examine the impact of urban growth on the composition of household consumption and welfare. We employ temporal and spatial variations in nightlight intensity to capture urban expansion and growth. Controlling for time-invariant unobserved heterogeneity across individuals and localities, we find that urbanisation, as measured by nightlight intensity, is associated with significant welfare improvement. We find that tripling existing average nightlight intensity in a village is associated with a 42–46% improvement in household welfare. Urbanisation is also associated with a significant increase in the share of non-food consumption, which is a good measure of overall welfare and poverty. In addition, we find significant heterogeneity in urban expansion across major towns and small towns. Urban expansion in rural areas and small towns appears more impactful than similar expansion in major cities. Finally, quantile regression results suggest that better-off households are likely to benefit more from urban expansion, which may translate into higher inequality across households or communities. Our results can inform public policy debates on the consequences and implications of urban expansion in Africa.
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spelling CGSpace1404182025-10-26T13:02:11Z Can urbanisation improve household welfare? Evidence From Ethiopia Abay, Kibrom A. Tiberti, Luca Woldemichael, Andinet Mezgebo, Tsega G. Endale, Meron labour market policies households urban areas welfare urbanization rural areas Despite evolving evidence that Africa is experiencing urbanisation in a different way, empirical evaluations of the welfare implications of urban-development programs in Africa remain scant. We investigate the welfare implications of recent urbanisation processes in Ethiopia using household-level longitudinal data and satellite-based nightlight intensity. We also examine the impact of urban growth on the composition of household consumption and welfare. We employ temporal and spatial variations in nightlight intensity to capture urban expansion and growth. Controlling for time-invariant unobserved heterogeneity across individuals and localities, we find that urbanisation, as measured by nightlight intensity, is associated with significant welfare improvement. We find that tripling existing average nightlight intensity in a village is associated with a 42–46% improvement in household welfare. Urbanisation is also associated with a significant increase in the share of non-food consumption, which is a good measure of overall welfare and poverty. In addition, we find significant heterogeneity in urban expansion across major towns and small towns. Urban expansion in rural areas and small towns appears more impactful than similar expansion in major cities. Finally, quantile regression results suggest that better-off households are likely to benefit more from urban expansion, which may translate into higher inequality across households or communities. Our results can inform public policy debates on the consequences and implications of urban expansion in Africa. 2022-12-30 2024-03-14T12:09:29Z 2024-03-14T12:09:29Z Journal Article https://hdl.handle.net/10568/140418 en Limited Access Oxford University Press Abay, Kibrom A.; Tiberti, Luca; Woldemichael, Andinet; Mezgebo, Tsega G.; and Endale, Meron. 2023. Can urbanisation improve household welfare? Evidence From Ethiopia. Journal of African Economies 32(1): 81-109. https://doi.org/10.1093/jae/ejac003
spellingShingle labour market
policies
households
urban areas
welfare
urbanization
rural areas
Abay, Kibrom A.
Tiberti, Luca
Woldemichael, Andinet
Mezgebo, Tsega G.
Endale, Meron
Can urbanisation improve household welfare? Evidence From Ethiopia
title Can urbanisation improve household welfare? Evidence From Ethiopia
title_full Can urbanisation improve household welfare? Evidence From Ethiopia
title_fullStr Can urbanisation improve household welfare? Evidence From Ethiopia
title_full_unstemmed Can urbanisation improve household welfare? Evidence From Ethiopia
title_short Can urbanisation improve household welfare? Evidence From Ethiopia
title_sort can urbanisation improve household welfare evidence from ethiopia
topic labour market
policies
households
urban areas
welfare
urbanization
rural areas
url https://hdl.handle.net/10568/140418
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