Income portfolios in rural Ethiopia and Tanzania: choices and constraints

Pramila Krishnan and Stefan Dercon

No 1995-12, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: The paper analyzes the different income portfolios of households using survey data from rural Ethiopia and rural Tanzania. It suggests that the different portfolios held by households cannot be explained by their behaviour towards risk as is usually suggested. It is better explained by differences in ability, location, and in access to credit. A logit analysis of households with different income portfolios, controlling for the effects of location, suggests that entry into high-return activities is determined by investment in particular skills or by access to capital.

Date: 1995
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Published in Journal of Development Studies, 32(6), August 1996, pp850-875

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Journal Article: Income portfolios in rural Ethiopia and Tanzania: Choices and constraints (1996)
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