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The study evaluated impact of non-farm activities on wellbeing of rural household using cross-sectional data. Household’s consumption expenditure per adult equivalent was analyzed to measure household wellbeing. Multi-stage sampling technique was employed to select sample households from three Kebeles. Both primary and secondary data were used. Data were collected primarily through Semi-structured survey questionnaire from 178 households. Descriptive statistics and propensity score matching model were used to analyze the data. Propensity score matching (PSM) technique of impact evaluation preferred to overcome counterfactual problem and selection bias. Analysis results show that non-farm activities have increased consumption expenditure per adult equivalent ranging from 29.1% to 36.7% for participant households. In conclusion, participant households were more likely to be wellbeing as compared to the non-participant households. The result from the logistic estimator also revealed that participation in non-farm activities was significantly associated with variables such as age, education, adult equivalent size, cultivable land size, farm experience, and distance from main road, tropical livestock unit and access to nonfarm training. Therefore, such rural development planners and other stakeholders should consider the roles of these variables within the selection of participants for desired impact on economic wellbeing.

Impact of Non-farm Activities on Wellbeing of Rural Household, the Case of Kersa District, Eastern Hararghe Zone, Ethiopia