Determinants of Land and Labour Market Participation Decisions in Rural Ethiopia

Muna Shifa

Journal of African Development, 2016, vol. 18, issue 2, 73-90

Abstract: This paper attempts to determine the factors influencing farmers' land and labour market participation decisions in rural Ethiopia. A multivariate probit estimation technique is used to account for potential interdependencies between land and labour allocation strategies. Results suggest that households that are better endowed with farming resources such as oxen and farming skills are more likely to get access to more land and labour through factor markets, while households that are less endowed with these resources are more likely to rent out their land and participate in off-farm jobs. The complementary nature of land renting out and involvement in off-farm work suggests that policy makers should give due consideration to the development of rural off-farm jobs to reduce poverty in rural areas.

Keywords: Agricultural labour Markets; Land rental Markets; off-farm employment; Multivariate probit model; rural Ethiopia (search for similar items in EconPapers)
JEL-codes: C35 J43 J46 Q15 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:afe:journl:v:18:y:2016:i:2:p:73-90

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