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Employment dynamics in the rural nonfarm sector in Ethiopia Do the poor have time on their side?

Sosina Bezu () and Christopher Barrett ()

MPRA Paper from University Library of Munich, Germany

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.

Keywords: rural nonfarm; income diversification; employment transitions; Ethiopia; shocks (search for similar items in EconPapers)
JEL-codes: D13 J2 (search for similar items in EconPapers)
Date: 2010, Revised 2011
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Journal Article: Employment Dynamics in the Rural Nonfarm Sector in Ethiopia: Do the Poor Have Time on Their Side? (2012) Downloads
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