Abstract:
This paper intended to study the impact of migration on household income diversification in
Setema Woreda of Jimma Zone, Oromia Regional State. This paper uses limited-dependent
variable methods and new data from Setema district to test the effect of intercontinental on
activity choice and incomes in rural households. Econometric evidence assists our theoretical
expectation that the impact of emigration varies both by migrant destination and production
human activity. We find no evidence of either positive or negative effects of continental
migration on any activity because all migrants are intercontinental migrants. However,
intercontinental migration, which tends to be long-term and generates significantly larger
remittances, stimulates livestock production and cash crop know negatively associated with non farm activities income and positively associated with crop production but not significant. the
policy recommendation is very important to continue the effect of migrants on financial gain
diversification i.e. on livestock and cash crop production promotion of production working on
infrastructure and search of groundwater for irrigation is most policy recommended to the
district. The result of this study is expected to shed light on the current literature gap in the study
area.
