Employment Dynamics in the Rural Nonfarm Sector in Ethiopia: Do the Poor Have Time on Their Side?

Sosina Bezu () and Christopher Barrett

Journal of Development Studies, 2012, vol. 48, issue 9, 1223-1240

Abstract: We study rural employment transitions in Ethiopia between farming and both low- and high-return nonfarm employment. We find that initial asset holdings and access to saving and credit are important factors for transition into high-return rural nonfarm employment and that households' participation in high-return rural nonfarm activities is robust to their experience of health shocks. However, shocks that affect their wealth or liquidity may trigger descents into low-return nonfarm employment. On the other hand, shocks that reduce agricultural income motivate transitions into high-return rural nonfarm employment.

Date: 2012
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Working Paper: Employment dynamics in the rural nonfarm sector in Ethiopia Do the poor have time on their side? (2011)
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DOI: 10.1080/00220388.2012.671476

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