Abstract:
This study examined the determinants of off-farm employment participation of farm households
in Jimma Arjo district of Oromia region, Western Ethiopia. A total of 288 sample household
heads were selected through multistage sampling procedure. So, the study was used primary
data collected via questionnaire and interviews. The collected data was analyzed and presented
quantitatively by using descriptive statistics (like mean, sum, percentage, frequency, Chi-square
test and t-test). In addition, logistic regression model was also used to estimate the effects of
hypothesized independent variables on the dependent variable. The survey result indicated that
69.45% of the respondents were participated on off farm employment and it also reveals the
major off farm activities practiced in study area, such as; local trade, animal fattening and sale
of local food and drinks. The result also identified the role of off farm activities to the farm
households like: additional employment, learning new skills, increase purchasing power/
relaxation of financial constraint, food security, better health, educating children and better
housing. The outcome of the logistic regression indicated that household heads’ sex, education
level, family size, family labour, access to credit, practice of saving and total livestock were
significantly and positively influenced off farm participation; while household heads’ age, land
size, fertility of land(rich), access to training and distance from market were affected their
participation negatively and significantly. The findings of the study suggest that, efforts should
focus on the promotion of off farm opportunities through provision of physical infrastructure
such as road, improving credit provision and improving educational status of farm households.
