Sosina Bezu|Christopher B. Barrett
Employment Dynamics in the Rural Nonfarm Sector in Ethiopia: Do the Poor Have Time on Their Side?
Norwegian University of Life Sciences|Cornell University
abstract study rural employment transitions ethiopia farming low highreturn nonfarm employment find initial asset holdings access saving credit important factors transition highreturn rural nonfarm employment households participation highreturn rural nonfarm activities robust experience health shocks however shocks affect wealth liquidity may trigger descents lowreturn nonfarm employment hand shocks reduce agricultural income motivate transitions highreturn rural nonfarm employment notes 1 possible also household owns enough capital may optimally invest types activities ignore possibility sake simplicity 2 want describe returns general study areas use pooled data six surveys 3 questionnaire distinguish agricultural nonagricultural goods regard price shocks lack access inputs assume mainly agricultural goods 4 smaller number observations subsample initially highreturn rnfe meant could include interaction terms also tested key assumption independence irrelevant alternatives confirm data violate core assumptions multinomial logit estimator maddala citation1983 hausmanmcfadden test reject null hypothesis iia confirming validity multinomial logit estimator additional informationnotes contributorssosina bezu online appendix available article accessed via online version journal available httpdxdoiorg101080002203882012671476