Determinant of smallholder farmer labor allocation decisions in Uganda

Although there is growing evidence of the increasing role of nonfarm activities in rural livelihoods, there is still relatively little empirical evidence regarding the factors that influence smallholder farmers to diversify into nonfarm activities. This study analyses the factors that influence hous...

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Autores principales: Bagamba, Fred, Burger, Kees, Kuyvenhoven, Arie
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2009
Materias:
Acceso en línea:https://hdl.handle.net/10568/161853
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author Bagamba, Fred
Burger, Kees
Kuyvenhoven, Arie
author_browse Bagamba, Fred
Burger, Kees
Kuyvenhoven, Arie
author_facet Bagamba, Fred
Burger, Kees
Kuyvenhoven, Arie
author_sort Bagamba, Fred
collection Repository of Agricultural Research Outputs (CGSpace)
description Although there is growing evidence of the increasing role of nonfarm activities in rural livelihoods, there is still relatively little empirical evidence regarding the factors that influence smallholder farmers to diversify into nonfarm activities. This study analyses the factors that influence household labor allocation decisions and demand for farm labor in Uganda. Data were collected from 660 households in three banana-based production zones with divergent production constraints and opportunities. The determinants of demand for hired labor were estimated with the Tobit model. Linear regression was used to estimate reduced-form equations for the time-allocation decisions of household members. Our findings show that household members respond positively to increases in wages, suggesting that they respond to economic incentives. Increased wage rates negatively affect the use of hired labor, but household size has no effect on the use of hired labor, indicating that the economic rationing of labor hiring has more to do with the market wage than family size or composition. Education and road access have positive effects on the amount of time allocated to off-farm activities. Access to off-farm opportunities, however, takes away the most productive labor from farm production. These findings suggest that investment in road infrastructure and education suited to smallholder production needs could help alleviate bottlenecks in labor markets and improve resource allocation between farm and nonfarm sectors.
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spelling CGSpace1618532025-11-06T05:37:55Z Determinant of smallholder farmer labor allocation decisions in Uganda Bagamba, Fred Burger, Kees Kuyvenhoven, Arie smallholders labour market off-farm employment land management gender time use patterns Although there is growing evidence of the increasing role of nonfarm activities in rural livelihoods, there is still relatively little empirical evidence regarding the factors that influence smallholder farmers to diversify into nonfarm activities. This study analyses the factors that influence household labor allocation decisions and demand for farm labor in Uganda. Data were collected from 660 households in three banana-based production zones with divergent production constraints and opportunities. The determinants of demand for hired labor were estimated with the Tobit model. Linear regression was used to estimate reduced-form equations for the time-allocation decisions of household members. Our findings show that household members respond positively to increases in wages, suggesting that they respond to economic incentives. Increased wage rates negatively affect the use of hired labor, but household size has no effect on the use of hired labor, indicating that the economic rationing of labor hiring has more to do with the market wage than family size or composition. Education and road access have positive effects on the amount of time allocated to off-farm activities. Access to off-farm opportunities, however, takes away the most productive labor from farm production. These findings suggest that investment in road infrastructure and education suited to smallholder production needs could help alleviate bottlenecks in labor markets and improve resource allocation between farm and nonfarm sectors. 2009 2024-11-21T09:58:50Z 2024-11-21T09:58:50Z Working Paper https://hdl.handle.net/10568/161853 en Open Access application/pdf International Food Policy Research Institute Bagamba, Fred; Burger, Kees; Kuyvenhoven, Arie. 2009. Determinant of smallholder farmer labor allocation decisions in Uganda. IFPRI Discussion Paper 887. https://hdl.handle.net/10568/161853
spellingShingle smallholders
labour market
off-farm employment
land management
gender
time use patterns
Bagamba, Fred
Burger, Kees
Kuyvenhoven, Arie
Determinant of smallholder farmer labor allocation decisions in Uganda
title Determinant of smallholder farmer labor allocation decisions in Uganda
title_full Determinant of smallholder farmer labor allocation decisions in Uganda
title_fullStr Determinant of smallholder farmer labor allocation decisions in Uganda
title_full_unstemmed Determinant of smallholder farmer labor allocation decisions in Uganda
title_short Determinant of smallholder farmer labor allocation decisions in Uganda
title_sort determinant of smallholder farmer labor allocation decisions in uganda
topic smallholders
labour market
off-farm employment
land management
gender
time use patterns
url https://hdl.handle.net/10568/161853
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