Determinants of off-farm work participation of farm Households in Ethiopia: A review

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.