Determinants of Farm Households’ Participation on Off-Farm Employment: The Case of Jimma Arjo District, Ethiopia

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.