Does microfinance move the households toward self employment?

The present study is based on 5208 observations, which is comprised of participant households of microcredit programs, non-participant households of program villages as well as non-participant households from control villages. We found that among the participant households 37% depend on wage as well as self employment activity and 20% is solely dependent on self-employment activity and the remaining depends on dual activity (self-employment as well as wage employment), but among the non-participant households 60% is solely dependent on day labor activity. To find the link between occupation selection and microfinance participation, we use simple as well as multiple regression models like logit, multinomial logit, seemingly unrelated regression, etc. The regression results based on earnings from the elective occupations or number of days worked in that occupation suggests that the surveyed participant households have higher likelihood of being self-employed or to maintain self-employment as well as wage employment at a time to increase their welfare. The shifters due to relaxation of credit constraint or proliferation of access to credit moves toward sole self-employment activity with higher likelihood than the dual activity – to be employed in self-employment as well as wage employment within a given time span. In compendium, we can lucidly claim from this paper that beyond the asset structure of the households such as landholdings, savings, education, etc., the microfinance directly induces self-employment activity or transfer available working days from the day labor activity to self-employment activity and maximize their economic gain such as higher income, savings etc.Credit, Self-employment, Logit, Multinomial logit, Seemingly Unrelated Model

Livelihood Impact of Carbon Sequestration on Local Communities: A Case of Ethiopia Nature Regeneration Project in Wolaita, Ethiopia

A number of carbon sequestration projects were being implemented worldwide to address environmental and economic issues simultaneously. This research paper describes research concerning a carbon sequestration project in Humbo district in Ethiopia. The central research question is: Do the project activities result in improved socio economic aspects of small holder farmers in the area? Questionnaire-based household surveys were the main source of data. Data was collected from 130 randomly selected households by using probability proportional to household size. The key results are as follows.1) Participant households used fodder, fuel wood, medicinal plants, honey and wax forest resources and financial benefit from the project for their livelihood and forgone charcoal, fuel wood, grazing land and poles. 2) Project participation is among determinants of household income. 3) Participant households were different in household head age, family size, per capita expenditures for clothing and footwear as a proxy of per capita income and the numbers of main meals including animal protein (i.e. poultry and beef) during the last seven days taken by participant households were higher than non participant households

The Impact of Non-farm Activities on Poverty Reduction among Rural Farm Households in Ambo District of West Shoa Zone, Oromia Region, Ethiopia

This study investigated the impact of cash-oriented non-farm activities on poverty reduction among rural farm households in Ambo district of West Shoa zone of Oromia region, Ethiopia. It was conducted in the five selected kebeles; namely Golja, Ya’i Chebo, Uko Korke, Ilamu Goromti and Birbirsa Kulit. Cross-sectional survey was employed to collect data from 300 respondents, in which 150 were participants and 150 were non-participants in remunerative non-farm activities. The cost of basic needs approach was used to estimate absolute poverty line, and the Foster, Greer and Thorbeck index to determine the incidence, depth and severity of poverty among participant and non-participant households. The study employed logit model to identify determinants of non-farm activities participation and propensity score matching method to analyze the impact of non-farm activities on poverty. The study finds that 26.33% of households in the study area are poor. The incidence, depth and severity of poverty were found to be higher among non-participant households than among participant households. The result of logit regression indicated that gender, marital status of household head, dependency ratio, skill, access to credit and distance to the nearest market are identified as determinants of participation in non-farm activities. The propensity score matching results indicated that participation in remunerative non-farm activities has a significant effect on the households’ consumption expenditure level. The average treatment effect of treated indicated that, the average monthly per capita consumption expenditure of participant is birr 72.31 more than non-participants households. These results indicate that the participation in remunerative non-farm activities improved the livelihood of households in the study district. Thus, while this study is not advocating for non-farm economic activities as a substitute to farming, non-farm work could be a reliable complement to farming activities. The promotion of non-farm activities in addition to farm activities seems indispensable to alleviate rural poverty. Keywords: Poverty, Rural farm households, Impact, Non-farm activities, Propensity score matching DOI: 10.7176/JPID/58-02 Publication date: January 31st 202

Does Participation in the Conservation Reserve Program and/or Off-Farm Work Affect the Level and Distribution of Farm Household Income?

Since both release resources from agricultural production, it is not surprising that decisions to work off the farm and to participate in the U. S. Conservation Reserve Program (CRP) are correlated. By incorporating these decisions into a heteroskedastic specification of a farm household income function, we identify their effects on mean income, as well as on the variability in income for groups of farm households participating in combinations of these activities. Our results indicate participation in CRP and off-farm work by the operator and the spouse increase farm household income, but these choices also decrease the variability in household income among participant households relative to that of other farm households with otherwise similar characteristics.Conservation Reserve Program, farm household income, income distribution, off-farm work, Agribusiness, Agricultural Finance, Farm Management,

Impact of Productive Safety Net Programme on Food Security: The Case of Babile District, Somali Regional State, Ethiopia

This Study analyzed the impact of productive safety net programme (PSNP) on household food security status. Multistage stage sampling technique was applied to draw 180 sample respondents considering PSNP participants and non-participants. A survey was conducted to collect primary data from the sampled households. In addition, secondary data were gathered by reviewing relevant documents. Propensity score matching (PSM) technique of impact evaluation preferred to overcome counterfactual problem and selection bias. Analysis results show that PSNP has increased calorie intake by 16.54% (415.26 kilocalories) for participant households. In conclusion, participant households were more likely to be food secured as compared to the non-participant households. The result from the logistic estimator also revealed that participation in PSNP was significantly associated with variables such as sex, education, family size, cultivable land size, house roofing materials, distance from nearest market place and access to improved agricultural inputs. Therefore, such programs should consider the roles of those variables in the selection of participants for desired impact under similar settings. Keywords: Safety Net Program, Impact, Propensity Score Matching, Food Security, Babile

The Impact of Productive Safety Net Programme on Food Security: The Case of Babile District, Somali Regional State, Ethiopia

This Study analyzed the impact of productive safety net programme (PSNP) on household food security status. Multistage stage sampling technique was applied to draw 180 sample respondents considering PSNP participants and non-participants. A survey was conducted to collect primary data from the sampled households. In addition, secondary data were gathered by reviewing relevant documents. Propensity score matching (PSM) technique of impact evaluation preferred to overcome counterfactual problem and selection bias. Analysis results show that PSNP has increased calorie intake by 16.54% (415.26 kilocalories) for participant households. In conclusion, participant households were more likely to be food secured as compared to the non-participant households. The result from the logistic estimator also revealed that participation in PSNP was significantly associated with variables such as sex, education, family size, cultivable land size, house roofing materials, distance from nearest market place and access to improved agricultural inputs. Therefore, such programs should consider the roles of those variables in the selection of participants for desired impact under similar settings. Keywords: Safety Net Program, Impact, Propensity Score Matching, Food Security, Babil

Do Market Linkages Play a Role in Improving Food Security Status of Rural Households? Evidence from Chencha Apple Production and Marketing Project, Southern Ethiopia

The objective of this paper is to assess the effect of improvement in production and marketing of Highland Fruits on rural household's food security status. The study carried out in Chencha District, Southern Ethiopia in May 2015 to assess the impact of the project designed and implemented by the World Vision (WV) Ethiopia. Systematic random sampling method followed to select both participant and non-participant households of the project. Food security assessed using Household Food Insecurity Access Scale (HFIAS), Months of Adequate Household Food Provisioning (MAHFP) and Household Dietary Diversity Score (HDDS). Totally, 418 households participated in the survey with a response rate of 95.87%. The result from HFIAS confirms significant variation in food insecurity based on participation status. Non-participants are relatively food insecured compared to their counter parts. Mean of MAHFP shows statistically significant difference with higher MAHFP for participated households. In addition, the mean HDDS also shows statistically significant variation between participant and non-participant households. Higher mean dietary diversity score and increased number in months of adequate household food provisioning among project participants signals positive contribution of the project in improving food security status. Thus, improving production and marketing of Highland Fruits can be an alternative in reducing food insecurity problem among rural communities. Keywords: Apple production, Food security, HFIAS, MAHFP, HDDS

Social Security: A Financial Appraisal Across and Within Generations

This paper computes the expected present value of Social Security retirement benefits and taxes for households of different marital circumstances, incomes, and age cohorts. Also computed are the net gain or loss from participation in the system and the expected internal rate of return it offers various participants. The paper calculates the marginal linkage between benefits and contributions, and also examines how the age of entry into the covered workforce affects the participant. All computations are made for the 1985 Social Security and income tax laws. The general results are that Social Security offers vastly different terms to households in different circumstances. The net gain or loss varies by $200,000 and the real internal rate of return on contributions ranges from negative numbers to 6.6% for households of different ages, income levels, and marital status. These differences are far greater than the widely debated distributional affects of relevant income tax alternatives. We also find that there is a great deal of variance in the marginal linkage of benefits and taxes with many households facing a situation where the present value of benefits increases from 0 to 30 cents per extra dollar of taxes paid.

Agricultural Policy Influence Upon the Economic Behaviour of Rural Households

The deep transformations brought about by the progressive and steady commitment of Romanian economy to the market economy have determined, among others, the modification of the role and status of rural household in the economic activity. Rural household changed from a simple participant, constrained to act in a certain way under a centralised, equalising and levelling system during the communist period, to a participant that carries out its activity in a competing environment in which initiative, creativity and efficiency are defining elements. Based on field surveys conducted at national level, the present paper intends to identify the evolution of economic behaviours specific to rural households under the influence of agricultural policy measures in the period 1997-2000. The conclusions of this study reveal that in this period, most of rural households operated under a subsistence system, according to an economic rationality in which market economy mechanism are lacking. However, the economic picture is far from being a homogeneous one: the emergence of a nucleus of agricultural entrepreneurs, i.e. those who assume the risk of shifting from subsistence to competitive agriculture, those who are trying to turn the peasant household into a farm managed on the capitalist principles, has induced new economic behaviours in the rural communities.rural household, economic behaviour, agricultural policy, Romania, Consumer/Household Economics,

Impact of Soil and Water Conservation on Household Income in West Arsi Zone of Oromia

Land degradation due to soil erosion and nutrient depletion is one of the main problems constraining the development of the agricultural sector in Ethiopia. As part of intervention activities number of soil and water conservation (SWC) practices have been promoted to smallholder farmers living in highly degraded and drought prone areas of the country. This study was conducted to assess the impact of SWC intervention on the livelihood of smallholder farm households in terms household income and productivity. To meet this objective primary data was gathered from 150 sample responds (67 SWC program participants and 83 non-participants). Descriptive and inferential statistics and propensity score matching (PSM) models were used to address the stated objectives. Results of the descriptive statistics showed that before matching there was statistically significant difference between program participants and their counterfactual households in terms of sex, education and farm experience generally in favor of non-program participants whereas access to market information and amount of land allocated for production in favor of program participant in the zone. The analysis of mean difference in outcome variables before matching result indicated that the mean total crop yield for SWC practiced respondent households is higher (22.102quintal per hectare per household) than SWC non-practiced respondent households (17.26quintal per hectare per household) with mean total crop yield difference equivalent to 4.842 quintal per hectare per household in the zone. In the mean-time, even though, the results of the PSM model revealed that SWC intervention did not result in significant difference between program participant and non-participant households in terms of maize productivity and gross crop income total annual crop income of households who participated in SWC program was 10,838.13 birr whereas its 6075.48 birr for non-participant farmers accounting 4762.65birr difference suggesting that on average participant households earned 43.9 percent more crop value per hectare than the control group. Logistic regression model was employed to estimate propensity scores for matching SWC program households with their counterfactuals. Except sex of the household, Market information, amount of land cultivated, Education and farm experience influenced the probability of HH participation in SWC positively and significantly at 10% expect land cultivated at 5% level. The implication could be that farm household participation was more guided by demographic than economics factors (defined by farm size and herd size). Nominal results of analysis of treatment effects indicate that there was a sign of positive impact on both of the variables considered due to SWC program. However, the changes in crop productivity and gross household income could not be statistically justified as there was no statistically significant difference between the two groups in terms of these variables. The possible reason could be that SWC programs are not short-term nature and impacts are to be realized gradually with increased adoption and intensification of activities. Finally it was to be noted that there were positive trends which all together should guide SWC policy makers to identify important factors influencing the contribution of such a program and reconsider the design and implementation of the interventions. Keywords: Impacts, Income, participant, non- participant, household, Propensity Score Matching. DOI: 10.7176/JBAH/12-18-01 Publication date:September 30th 2022