Does the Nonfarm Economy Offer Pathways for Upward Mobility? Evidence from a Panel Data Study in Ethiopia

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• 作者：Sosina Bezu
• 关键词：rural nonfarm ; income dynamics ; income diversification ; Africa ; Ethiopia ; impact
• 刊名：World Development
• 出版年：2012
• 期刊代码：66_0305750x
• 类别：eco
• 出版时间：August, 2012
• 卷：40
• 期：8
• 页码：1634-1646
• 文件大小：336 K

摘要

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Summary

Empirical studies across many developing countries routinely document a positive correlation between participation in rural nonfarm employment and households鈥?wealth or income. This paper explores whether nonfarm employment leads to higher consumption expenditure growth in Ethiopia. We find that: (1) households鈥?consumption expenditure growth is positively correlated with the initial share of nonfarm income; (2) the growth elasticity of nonfarm income share is higher for wealthier households; and (3) the main source of growth for nonfarm participants comes from the higher rates of return participants enjoy on their human and physical capital.