Abstract

Nowadays, the non-farm sector gives more attention and high expectations in reducing poverty in sub-Saharan African. Because participation of farm households in the none-farm sector out of their farm activities will play a great role to reduce poverty. Cross-sectional data were used to collect data in 2020 from farm household heads of 371 respondents with the mixed methodology to investigate the effect of demographic factors in none/off-farm economic activities on gender perspective in Ethiopia. In this study, we employ a Logistic regression model to explore the probabilities of household heads' participation in none/off-farm economic activities out of their farm. The result indicated, age and education level have a positive effect and statistically significant effect on increasing non-farm activities with the coefficients of 3.406, 1.956 respectively, confirmed that these variables should take into account in policy development to increase their impact on livelihood diversification. And Gender has a negatively significant on livelihood diversification. FHH is more participants in non-farm economic activities than MHH. Credit access does not contribute to increasing livelihood diversification instead; it contributes to agricultural specialization, not diversification. Surprisingly, family size has insignificant results in non-farm economic activities The outcome indicated it has its implications for the Ethiopian policy and strategy. The government should give more attention to the progressive aspects of non-farm economic activities to eradicate poverty. Whereas, decreasing its negative impact on poorer households by controlling obstacles of non-farm activities.

Highlights

  • Developing countries and African sub-Saharan countries, their economic activities are depending upon on-farm

  • Shigute et al (Dedehouanou et al 2018a; Gebru et al 2020). This indicates that farmers should look for livelihood diversification portfolios of none/off-farm activities for security and survival Ellis (2000). livelihood diversification can contribute a great role to reduce poverty and promoting economic growth in sub-Saharan African countries (Alobo Loison 2019b; Haggblade, Hazell, and Reardon 2010)

  • The previous empirical studies Haggblade et al (2010), Alobo Loison (Alobo Loison 2019b) suggested that both women and men in sub-Saharan countries are actively engaged in non-farm economic activities because of the social, economic, physical bottlenecks females mostly lack the productive asset as the result they participate in low return activities.. (Haggblade et al 2010; Lanjouw and Lanjouw 2001) found the gender-specific related challenge makes rural women limited from the labor market and non-farm activities

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Summary

Introduction

Developing countries and African sub-Saharan countries, their economic activities are depending upon on-farm. Gender-specific studies on gender difference and overall effects, and tendencies of non-farm economic activities in rural areas are mainly missing. The prior empirical studies have been investigated how the demographic characteristics of the farmer household affected livelihood diversification. This review in this paper makes a comprehensive, systematic, and updated literature review and highlights necessary research gaps while critically evaluating the prior studies It provides a detailed discussion of prior empirical studies investigating the effect of gender in livelihood diversification. The previous empirical studies Haggblade et al (2010), Alobo Loison (Alobo Loison 2019b) suggested that both women and men in sub-Saharan countries are actively engaged in non-farm economic activities because of the social, economic, physical bottlenecks females mostly lack the productive asset as the result they participate in low return activities..

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