Income Diversification And Household Welfare
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Income Diversification And Household Welfare
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Author : Christiane El Jarbi
language : de
Publisher: Sudwestdeutscher Verlag Fur Hochschulschriften AG
Release Date : 2012-05
Income Diversification And Household Welfare written by Christiane El Jarbi and has been published by Sudwestdeutscher Verlag Fur Hochschulschriften AG this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-05 with categories.
About 65% of the population in Sub-Saharan Africa lives in rural areas and due to the strong dependency on agricultural production mainly the rural population is affected by income shortfalls. To cope with this situation, households are deriving various strategies to spread these risks and smooth their income. One of these strategies is the participation in nonfarm employment due to its independency regarding agricultural risks, but researchers have already indicated that households may face several entry barriers to the nonfarm sector. For Ghana, the author shows whether households perceiving their environment as risky expand their extent of nonfarm employment and whether the endowment with valuable physical capital can serve as a risk-coping strategy on its own. Additionally, the most important entry barriers to the Ghanaian nonfarm sector are revealed and the impact of nonfarm income diversification on the poverty status and the household welfare is analysed. The author identifies the main beneficiaries from nonfarm employment and recommendations for policy makers are presented.
Income Diversification In Zimbabwe
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Author : Lire Ersado
language : en
Publisher: World Bank Publications
Release Date : 2006
Income Diversification In Zimbabwe written by Lire Ersado and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Income categories.
"The author examines, taking into account the urban-rural divides, the changes and welfare implications of income diversification in Zimbabwe following macroeconomic policy changes and droughts of the early 1990s. Data from two comparable national income, consumption and expenditure surveys in 1990-91 and 1995-96, which straddled a period of economic volatility and natural disasters, show that the percentage of households earning income from private and informal sources grew considerably, while that from government and formal sources declined in the aftermath of the drought and policy changes. The author finds that, in general, rural households tend to have a more diversified portfolio of income compared with their urban counterparts, and the degree of diversification decreases with the level of urbanization. However, there are important differences in the level of diversification within the rural and urban areas depending on wealth: While the relatively better-off households have a more diversified income base in rural areas, it is the poor who pursue multiple income sources in urban areas. A decomposition of changes in welfare indicates that the total contribution of income diversification is large and increased between 1990-91 and 1995-96 in both urban and rural areas. On the other hand, there were significant declines in returns to human and physical capital assets during the same period. The findings suggest that households with a more diversified income base are better able to withstand the unfavorable impacts of the policy and weather shocks. The fact that relatively better-off households have a more diversified income base following the shocks implies that the poor are more vulnerable to economic changes unaccompanied by well-designed safety nets. "--World Bank web site.
Impact Of Malawi S Farm Income Diversification Programme On Household Welfare Empirical Evidence From Eleven Districts
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Author : Ng’ong’ola, Davies H.
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2017-09-01
Impact Of Malawi S Farm Income Diversification Programme On Household Welfare Empirical Evidence From Eleven Districts written by Ng’ong’ola, Davies H. and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017-09-01 with Political Science categories.
This study used cross sectional data from the government of Malawi’s Farm Income Diversification Programme (FIDP) to examine the impact of FIDP on household welfare. Total annual household income, food security, and the wealth status of households were used as measures of household welfare. A propensity score matching procedure was used to make statistically valid comparisons between the welfare of households which participated and did not participate in FIDP. The results show that households which participated in FIDP had higher incomes and their food security status improved more than among similar households which did not participate in the program. The results further reveal that FIDP improved the wealth of participating households compared to their counterparts who did not participate. Those FIDP participating households engaged in livestock production, in particular, experienced considerable growth of income, which suggests that livestock enterprises coupled with income from crops could be an important pathway for improving the wellbeing of households in Malawi.
Rural Income Diversification In Ethiopia Patterns Trends And Welfare Impacts
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Author : Abate, Gashaw Tadesse
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2023-01-03
Rural Income Diversification In Ethiopia Patterns Trends And Welfare Impacts written by Abate, Gashaw Tadesse and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-01-03 with Political Science categories.
Increased diversification of rural households into the rural non-farm economy is an important driver of economic growth and structural transformation in countries like Ethiopia where the vast majority of people live in rural areas and are largely dependent on seasonal agriculture. Some of the benefits of diversification include efficient utilization of asset endowments (e.g., labor during dry season) and reduction of risks. In this study we explore the: (i) patterns and trends of diversification, (ii) drivers of diversification including the association between rainfall risk/shocks and diversification, and (iii) welfare effects of diversification during the recent decade using three rounds of representative household data from the four main regions of Ethiopia. We used Cragg’s double-hurdle model, a method that considers the two-step decision making process in diversification (i.e., participation and extent of participation), to identify the determinants of diversification and a fixed-effect and instrumental variable (IV) approaches to understand the links between diversification and household welfare. The descriptive results show that rural households generally adopt a livelihood strategy dominated by farming and that the level of diversification has been stagnant over the period of analysis considered. More importantly, the vast majority of households continue to draw a substantial share of their income from crop production, followed by livestock. The income from non-farm activities accounts only between 17 percent and 23 percent of the total income. The econometrics results show that diversification is positively associated with credit access, membership in social insurance, ownership of mobile phone, relative measure of household wealth, and population density. Conversely, access to relatively large, fertile, and irrigable land discourages diversification into non-farm activities. The analysis on the association between rainfall risks and diversification indicates that rural households use income diversification both as risk mitigation and shock coping strategy. The results on the link between income diversification and household welfare indicate a positive association between diversification and household total consumption expenditure, dietary diversity score, and housing/roof quality. In sum, the results imply the need for a deliberate effort to expand the non-farm economy so as to tap its full potential for employment generation, income growth, and welfare improvements. A starting point could be for agricultural and rural development policies and investments to go beyond promotion of cereal crop production and facilitate participation in high value crop, livestock, aquaculture production. Incentivizing investments in value addition activities that can create and enrich upward and downward linkages in the midstream segment of agricultural value chains is another potential avenue to boost rural non-farm economy.
Income Sources Diversification
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Author : Reuben Adeolu Alabi
language : en
Publisher:
Release Date : 2008
Income Sources Diversification written by Reuben Adeolu Alabi and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008 with Income categories.
The Returns To Empowerment In Diversified Rural Household Evidence From Niger
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Author : Wouterse, Fleur Stephanie
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2017-02-23
The Returns To Empowerment In Diversified Rural Household Evidence From Niger written by Wouterse, Fleur Stephanie and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017-02-23 with Political Science categories.
Niger is a landlocked Sahelian country, two-thirds of which is in the Sahara Desert. Although only one-eighth of the land considered arable, the overwhelming majority of Niger’s households is involved in rain-fed agriculture largely for subsistence. Given erratic rainfall and low soil fertility, most smallholders fail to produce enough food to meet household requirements. Income diversification is thus the norm among these rural households and different income-generating activities offer alternative pathways out of poverty for households as well as a mechanism for managing risk in an uncertain environment. Empowerment is likely to be an important factor affecting the ability of households to diversity their activity portfolio and may also affect activity-incomes and thereby household welfare. In this study, I use new household- and individual-level empowerment data from the Tahoua region of Niger and regression analysis to quantify the effects of a range of human capital measures including empowerment on the activity portfolio and activity incomes of rural households. My findings reveal that empowerment in particular plays an important role in enabling households to engage in mixed diversification strategy, which combines staple cropping with nonfarm activities and migration. This is a “last resort” strategy for households in lower landholding quintiles to ensure food security and complement an inadequate resource base. Controlling for activity choice, three empowerment indicators in particular—confidence, group membership, and tenure security—strongly and positively affect income from staple and cash cropping, which on average makes up about 90 percent of household income. In fact, empowerment is the only human capital variable that strongly and positively affects total household income, opening up interesting avenues for policy interventions aimed at augmenting a household’s noncognitive ability through, for example, leadership training or encouraging producer group membership—to increase incomes of the rural poor.
Assessing Asset Indices
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Author : Deon Filmer
language : en
Publisher:
Release Date : 2012
Assessing Asset Indices written by Deon Filmer and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012 with categories.
This paper compares how results using various methods to construct asset indices match results using per capita expenditures. The analysis shows that inferences about inequalities in education, health care use, fertility, child mortality, as well as labor market outcomes are quite robust to the specific economic status measure used. The measures-most significantly per capita expenditures versus the class of asset indices-do not, however, yield identical household rankings. Two factors stand out in predicting the degree of congruence in rankings between per capita expenditures and an asset index. First is the extent to which per capita expenditures can be explained by observed household and community characteristics. In settings with small transitory shocks to expenditure, or with little measurement error in expenditure, the rankings yielded by the alternative approaches are most similar. Second is the extent to which expenditures are dominated by individually consumed goods such as food. Asset indices are typically derived from indicators of goods which are effectively public at the household level, while expenditures are often dominated by food, an almost exclusively private good. In settings where private goods such as food are the main component of expenditures, asset indices and per capita consumption yield the least similar results, although adjusting for economies of scale in household expenditures reconciles the results somewhat.
Income Diversification And Poverty In The Northern Uplands Of Vietnam
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Author : Nicholas Minot
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2006
Income Diversification And Poverty In The Northern Uplands Of Vietnam written by Nicholas Minot and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Social Science categories.
Vietnam has experienced macroeconomic stability and high rates of economic growth since the mid-1990s; nevertheless, it remains one of the 30 poorest countries in the world. Within Vietnam, the Northern Uplands is the poorest region, as well as being the most dependent on agriculture. This report examines income diversification in the Northern Uplands, including its contribution to poverty reduction and the constraints currently limiting further diversification. Given that crop and income diversification have been identified as essential components in raising rural incomes and reducing rural poverty, this report has significant implications for those involved in formulating agricultural policy and devising development programs.
African Smallholders
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Author : Göran Djurfeldt
language : en
Publisher: CABI
Release Date : 2011
African Smallholders written by Göran Djurfeldt and has been published by CABI this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011 with Technology & Engineering categories.
This book investigates how the changed agricultural policy climate affected government policies in the nine countries studied already as part of the preceding project: Ethiopia, Ghana, Kenya, Malawi, Mozambique, Nigeria, Tanzania, Uganda and Zambia. By repeating the cross-sectional survey made in over 100 villages in 2002 and converting it into a panel, it is possible to trace village- and household-level effects of agricultural policies and other macro-level processes. The book consists of 14 chapters most of which revolve around studies on each of the nine case study countries.
The Effects Of Climate And Conflict Shocks On Household Welfare
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Author : Yoro Diallo
language : en
Publisher: International Monetary Fund
Release Date : 2023-02-27
The Effects Of Climate And Conflict Shocks On Household Welfare written by Yoro Diallo and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-02-27 with Business & Economics categories.
As livelihoods in Niger still depend to a large extent on agricultural production, shocks related to climate change and insecurity present a threat for the country’s development path and are the main sources of vulnerability for the population in rural areas. This paper uses data from the latest household living standard survey to quantify the effects and interactions of these shocks on household welfare before proposing policy recommendations to enhance the resilience of households and the economy more generally. Our results show that when rainfall decreases by one standard deviation, per capita income falls by 11 percent. Furthermore, the impact of shocks on households depends on their adaptive capacity, which includes sufficient agricultural capital and income diversification. Without concrete adaptation measures, vulnerability to climate change is expected to increase in Niger, and human capital accumulation in poor household is also expected to deteriorate and could lead to a poverty trap.