Abstract

With data from 683 systematically selected households, the study employed the Heckman two-stage model and the propensity score matching method (PSM) to examine the impact of youth participation in agriculture as a primary occupation on income and poverty in Nigeria. The results indicate that the gender of the youth and their determination to stay in agriculture significantly increases the probability that youth will participate in agriculture as a primary occupation. In addition, youth participation in agriculture as a main occupation contributes significantly to per capita household income and has the likelihood to reduce poverty by 17%. The daily wage rate of hired labor and the total farmland owned are the variables that positively explained the per capita income. Poverty was reduced by market access, having agriculture as a primary occupation, income from agricultural production, the total monetary value of all the household assets, determination to remain in agriculture, and the square of the respondents’ age. These results imply that creating employment for youth by engaging them in agriculture as a full-time occupation can increase their income and reduce poverty. However, the promotion of other secondary occupations, land, and market access is also vital.

Highlights

  • Licensee MDPI, Basel, Switzerland.Africa has the highest proportion of people living in extreme poverty, comprising about 413.3 million in 2015 [1,2]

  • About 46% of the respondents are in agriculture/agribusiness because of unemployment, a higher percentage (51%) of them are interested in agriculture and are passionate about being in agriculture/agribusiness

  • In addition to crop production, aquaculture, and livestock rearing, the respondents are involved in agribusiness activities along the agricultural value chain, such as input and output marketing, transporting, and processing

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Summary

Introduction

The increasing rate of unemployment and poverty have caused the youth to venture into crimes or risk their lives to illegally migrate to developed countries in search of better opportunities [4]. The National Policy on Youth Development in Nigeria defines youth as individuals between 18 and 35 years old. These are some of the cogent questions that this study intends to answer In answering these questions, the study guides the policymakers concerning youth, poverty, and employment-related policies, especially projects targeted at creating employment for the youth within the agricultural value chain. As mentioned previously, studies have been carried out in the area of youth employment and participation or engagement in agriculture, to the best knowledge of the authors, the aspect of youth participation in agriculture as a primary occupation and its poverty effects, using the PSM and Heckman two-stage model, has not been considered in the extant literature. This study contributes to the literature by filling this gap

Materials and Methods
Analytical Framework and Estimation Techniques
Heckman Two-Stage Model
Poverty Measurement
Socioeconomic Characteristics of the Respondents
Test of Mean Differences in Poverty Indicators
Poverty Indices
Impact of Youth Participation in Agriculture on Income and Poverty—PSM
Factors Affecting Income
Full Text
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