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Rural Labor Displacement and Climate Variability in Ethiopia: panel Data Approach


Unbalanced panel data (1994-2014) collected from central highlands and Arssi grain plough farming systems of Ethiopia were used to examine effect of climate variability on rural labor displacement. Instrumented random effect two stages least square regression result revealed that crop income increment significantly reduced rural labor movement of the study area. This significant interaction implies that factors related to climate variability, which have negative effect on crop income, strongly affected rural labor displacement. The model result also showed that possession of large livestock unit that is main source of labor, food and cash when households demand had significant effect in reducing the rural labor displacement of family members in the two farming systems. If household members have the possibility to participate in collecting crop residue, then they would not displace from their dwelling place as to the model result. Availability of relatively diversified income sources to fulfill consumption demand would guarantee household members to stay in rural areas and look for other alternatives. The other supportive regression model, three stages least square, result showed that factors including outbreak of disease and pests, and crop season rainfall inconsistencies significantly initiated household members to displace. Thus, this study strongly recommends that policies and programs should focus on creating stable income sources and sustainable moisture availability for smallholder households to reduce rural labor displacement from the two farming systems

Corporate Author: 
Ethiopian Economics Association (EEA)
Ethiopian Economics Association (EEA)
Primary Descriptors: 

Climate, Rainfall 

Secondary Descriptor: 

 Labor Displacement-Rural

Geographic Descriptors: 
Cataloge Date: 
Broad Subject heading: 
Farming system
Call Number: 
330.0963 PRO 2017
Serial Key Title: 
Proceedings of the Fourteenth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2017-06-01 00:00:00
Conference Place: 
Addis Ababa, EEA Multi-purpose Building Conference Hall
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: 
Thematic area: 
Agriculture, Environment and Social Sector Related Topics
Conference date: 
July 21 – 23, 2016