ISSN 2167-0447
International Journal of Agricultural Sciences ISSN 2167-0447 Vol. 10 (2), pp. 001-012, February, 2020. © International Scholars Journals
Full Length Research Paper
A study of off-farm labor supply decision of adults in rural Ethiopia
Meseret Ashenafi1*, Ashenafi O. E2, Miruts Gessesse3 and Ejegayehu Wolde4
1Department of Economics, Wollega University, P.O.Box 395, Nekemte, Ethiopia.
2International Water Management Institute (IWMI), P.O.Box, 5689, Addis Ababa, Ethiopia.
3School of Agricultural Economics and Agribusiness, Haramaya University, P.O.Box 138, Ethiopia.
4School of Agricultural Economics and Agribusiness, Haramaya University, P.O.Box 138, Ethiopia.
Accepted 07 October, 2019
Abstract
This article examined the determinants of off-farm labor supply decision of adult members of households in rural western Ethiopia using cross-section data collected from 324 sample households. The double hurdle model was employed and the off-farm work participation and hours of work decision of male and female adults were jointly estimated. The result indicated that individual characteristics, household composition, availability of credit, value of off-farm equipment and location factors significantly influenced participation decision; yet, individual attributes, economic incentives and location were the major determinants of hours of work decisions. The findings imply that given the importance of off-farm activity in alleviating the problems of low agricultural productivity and the resulting low income, policy measures which can promote rural investment and create employment opportunities in off-farm activities may help minimize the effects of low farm income.
Key words: Double hurdle, Ethiopia, household, off-farm, labour supply.