Abstract

Commercial opportunity for indigenous Aloe Vera products appear to be increasing as there is a sustained demand from international as well as African market with high participation of women. However, its income impact on the livelihood of household is not yet addressed. Therefore, this study evaluated the income impact of pastoralist women participation in Aloe Vera soap production in Yabello district, Borana zone of Oromia, Ethiopia. Both primary and secondary data were collected from 200 sample households using semi-structured questionnaire. To analyse the data both descriptive and inferential statistics and Propensity Score Matching model were applied. The Propensity Score Matching was applied the required matching processes, covariate balancing and sensitivity analysis tests. The result shows that participation of women in Aloe Vera soap production has insignificant result with impact on household income. However, the propensity score matching also indicates average treatment effect on treated income is 45.693 Birr. Result of sensitivity analysis further shows that the estimated effects are insensitive to unobserved selection bias within gamma level used. Thus, Aloe Vera soap production should be encouraged for the pastoralist social wellbeing.

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