Non-farm income and labor markets in rural Ethiopia

Ethiopia’s economy is rapidly transforming. However, the extent to which this is affecting off-farm income and labor markets in rural areas is not well understood. Based on a large-scale household survey in high potential agricultural areas, we find that total off-farm income (defined as wage and en...

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Main Authors: Bachewe, Fantu Nisrane, Berhane, Guush, Minten, Bart, Taffesse, Alemayehu Seyoum
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2016
Subjects:
Online Access:https://hdl.handle.net/10568/148057
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author Bachewe, Fantu Nisrane
Berhane, Guush
Minten, Bart
Taffesse, Alemayehu Seyoum
author_browse Bachewe, Fantu Nisrane
Berhane, Guush
Minten, Bart
Taffesse, Alemayehu Seyoum
author_facet Bachewe, Fantu Nisrane
Berhane, Guush
Minten, Bart
Taffesse, Alemayehu Seyoum
author_sort Bachewe, Fantu Nisrane
collection Repository of Agricultural Research Outputs (CGSpace)
description Ethiopia’s economy is rapidly transforming. However, the extent to which this is affecting off-farm income and labor markets in rural areas is not well understood. Based on a large-scale household survey in high potential agricultural areas, we find that total off-farm income (defined as wage and enterprise income) makes up 18 percent of total rural income. Wage income in both the agricultural and non-agricultural sectors accounts for 10 percent of total household income, equating in importance to livestock income. We show off-farm income and wage income to be relatively more important for the poor and female and youth-headed households. We further find that real rural wages increased by 54 percent over the last decade, mostly driven by high agricultural growth. While this wage increase is good news for the poor, it also induces adjustments in agricultural production practices, including increased adoption of labor-substituting technologies such as herbicides and mechanization. However, it also relaxes liquidity constraints in the off-season for some households, consequently leading to higher productivity.
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spelling CGSpace1480572025-11-06T07:15:25Z Non-farm income and labor markets in rural Ethiopia Bachewe, Fantu Nisrane Berhane, Guush Minten, Bart Taffesse, Alemayehu Seyoum income labour market economic development households labour wages productivity livestock off-farm employment rural areas Ethiopia’s economy is rapidly transforming. However, the extent to which this is affecting off-farm income and labor markets in rural areas is not well understood. Based on a large-scale household survey in high potential agricultural areas, we find that total off-farm income (defined as wage and enterprise income) makes up 18 percent of total rural income. Wage income in both the agricultural and non-agricultural sectors accounts for 10 percent of total household income, equating in importance to livestock income. We show off-farm income and wage income to be relatively more important for the poor and female and youth-headed households. We further find that real rural wages increased by 54 percent over the last decade, mostly driven by high agricultural growth. While this wage increase is good news for the poor, it also induces adjustments in agricultural production practices, including increased adoption of labor-substituting technologies such as herbicides and mechanization. However, it also relaxes liquidity constraints in the off-season for some households, consequently leading to higher productivity. 2016-06-07 2024-06-21T09:23:45Z 2024-06-21T09:23:45Z Working Paper https://hdl.handle.net/10568/148057 en https://hdl.handle.net/10568/148346 Open Access application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Bachewe, Fantu Nisrane; Berhane, Guush; Minten, Bart; and Taffesse, Alemayehu Seyoum. 2016. Non-farm income and labor markets in rural Ethiopia. ESSP II Working Paper 90. Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). https://hdl.handle.net/10568/148057
spellingShingle income
labour market
economic development
households
labour
wages
productivity
livestock
off-farm employment
rural areas
Bachewe, Fantu Nisrane
Berhane, Guush
Minten, Bart
Taffesse, Alemayehu Seyoum
Non-farm income and labor markets in rural Ethiopia
title Non-farm income and labor markets in rural Ethiopia
title_full Non-farm income and labor markets in rural Ethiopia
title_fullStr Non-farm income and labor markets in rural Ethiopia
title_full_unstemmed Non-farm income and labor markets in rural Ethiopia
title_short Non-farm income and labor markets in rural Ethiopia
title_sort non farm income and labor markets in rural ethiopia
topic income
labour market
economic development
households
labour
wages
productivity
livestock
off-farm employment
rural areas
url https://hdl.handle.net/10568/148057
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