Does the nonfarm economy offer pathways for upward mobility? Evidence from a panel data study in Ethiopia
Sosina Bezu (),
Christopher Barrett () and
Stein Holden ()
MPRA Paper from University Library of Munich, Germany
Empirical studies across many developing countries routinely document a positive correlation between participation in rural nonfarm employment and households’ wealth or income. This paper explores whether nonfarm employment leads to higher consumption expenditure growth in Ethiopia. We find that: 1) households’ consumption expenditure growth is positively correlated with the initial share of nonfarm income; 2) the growth elasticity of nonfarm income share is higher for wealthier households; and 3) the main source of growth for nonfarm participants comes from the higher rates of return participants enjoy on their human and physical capital.
Keywords: rural nonfarm; income dynamics; income diversification; Africa; Ethiopia; impact (search for similar items in EconPapers)
JEL-codes: D13 (search for similar items in EconPapers)
Date: 2010, Revised 2011
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Journal Article: Does the Nonfarm Economy Offer Pathways for Upward Mobility? Evidence from a Panel Data Study in Ethiopia (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:35754
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