Abstract

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.

Highlights

  • Agriculture is the most economic sector within the developing country

  • The study was analyzed the impact of non-farm activities on wellbeing of household in Kersa district

  • Analysis result shows that the likelihoods of participation in non-farm work are influenced by variables such as age and educational status of the household head, adult equivalent size, and cultivable land size, distance from main road, farm experience and non-farm training

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Summary

Introduction

Agriculture is the most economic sector within the developing country. The livelihoods of Most Africa’s poor depend largely on agriculture [1], in sub-saran African; agriculture contributes large percentage of GDP and generation of employment [2]. Despite the agriculture remains the most source of livelihood within the developing country, production is far from being adequate. Agricultural productivity in developing country is affected by various factors like climate change, based on rain fed, Prevalence of backward agricultural practices. As study with [4] agricultural productivity remain stagnant in sub-Saharan Africa. Farmers are taking up various altered copy strategies to reduce the vulnerability of farming output. From this strategies farmers in sub Saharan Africa participate in livelihood diversification activities to enhance their living standards through increasing households income accumulation and preserve their livelihoods facing faraway from increasing hazards of climatic and economic [6, 7]

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