The role of the rural labor market in reducing poverty in Western Ethiopia | Zendy

Bedemo Amsalu | Zendy; Kindie Getnet | Zendy; Belay Kassa | Zendy; P. R. Chaurasia S. | Zendy

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The role of the rural labor market in reducing poverty in Western Ethiopia

Author(s) -

Bedemo Amsalu,

Kindie Getnet,

Belay Kassa,

P. R. Chaurasia S.

Publication year - 2014

Publication title -

journal of development and agricultural economics

Language(s) - English

Resource type - Journals

ISSN - 2006-9774

DOI - 10.5897/jdae2013.0518

Subject(s) - poverty , consumption (sociology) , propensity score matching , economics , labour economics , rural poverty , household income , poverty reduction , matching (statistics) , wage , marginal propensity to consume , demographic economics , socioeconomics , economic growth , geography , social science , statistics , mathematics , archaeology , finance , sociology , market liquidity

This study examines the role of the rural labor market in reducing poverty and improving the well-being of smallholder farmers in rural Ethiopia. Propensity score matching technique is used to estimate the effect of labor market participation on poverty, consumption expenditure and income of smallholder farmers. The overall result indicates that the rural labor market contributes significantly to income growth, consumption expenditure and poverty reduction among smallholder farmers. Particularly, participation in off-farm wage activity has a positive and significant effect on household consumption expenditure and income but a negative and significant effect on the likelihood of a household being poor.

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