Abstract:
This study assesses the determinants of off-farm work participation decisions of farm households in
Ethiopia. The results of the study show that human capital variables such as health and training on
non-farm activities have positive relationships with off-farm participation decisions of farm
households. The education status of the farmers has also significant relationship with the off-farm
participation decisions of the members of the family. The availability of credit and transfer income
is the other factors that have a positive relation with the decisions of farmers to participate in offfarm activities. According to this study family size is found to be a significant and positively
influenced household off-farm participating of the farm households implying that, households with
large family size, having children of productive age, could be participate in the off-farm activities.
Cultivated land size is also positively determined the rural household off-farm participation. This
implies that households who had larger farm size had better chance to participate on off-farm
activities. Since households who had larger farm size had better chance to assess other additional
income activities. Total livestock owned is another factor that is related to the probability of
participating on off-farm in the country. The positive relationship is explained by the fact that total
livestock owned being a proxy for farmer’s resource endowment, those farmers with large herd size
have better chance to earn more income from livestock production. This in turn enabled them to
participate on off-farm participation through production of milk and meat, and manure from
livestock which is an important fuel for the sample households and used as a fertilizer. Therefore, the
country should encourage farmers to use credit facilities, introduced a proper forage development
programs, expanding veterinary service and disease prevention programs in the study area is crucial
to increase livestock production and productivity. Finally, policies that aim to increase the off-farm
work participation decisions of family members should take into consideration the difference in
responses to the various factors that affect the off-farm work decisions of farm households.
