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Book
Year: 2016 Publisher: Washington, D.C. : The World Bank,
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This paper investigates the impact of income diversification on farming households' welfare in Nigeria on two rounds of the Nigeria General Household Survey-Panel, namely the 2010/2011 and 2012/2013. The study finds that income diversification is the norm in Nigeria, with about 60 percent of farmers diversifying away from subsistence farming into non-farm activities and cash crops. In addition, using the panel of farmers interviewed before and after a severe drought that hit Northern Nigeria in particular in 2011, the study finds that diversification increased throughout Nigeria from 60 to 64 percent and in the North from 58 to 63 percent. The study postulates the existence of heterogeneous returns on diversification as a consequence of the drought, and estimates the returns through a non-parametric selection model using a local instrumental variable. The choice of this model is dictated by the necessity to account for both heterogeneous effects of diversification and selection bias related to households' decision to diversify. Overall, it is found that diversification positively affects consumption in Nigeria. However, who benefits the most is crucially determined by the initial conditions under which diversification is undertaken and the specific agro-climatic context in which households operate.
Heterogeneous Returns --- Income Diversification --- Off-Farm
Book
Year: 2018 Publisher: Washington, D.C. : The World Bank,
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Off-farm income constitutes a significant share of the household livelihood portfolios across Sub-Saharan Africa. Yet, the determinants and dynamics of individuals' participation in off-farm employment activities have not received adequate attention due to the weaknesses in individual-level data collection and the lack of longitudinal studies. This paper uses national panel household survey data from Ethiopia, Malawi, Nigeria, Tanzania, and Uganda; provides empirical evidence on individual-level off-farm (wage and self) employment participation rates; analyzes the extent and drivers of entry into off-farm employment and continued employment; and conducts the analysis by gender and rural/urban location. A significant share of the rural and urban working-age individual population is found to participate in off-farm employment, ranging at the national level from 34 percent in Ethiopia to 58 percent in Malawi. Men participate in wage and self-employment to a significantly greater extent compared with women across time as well as within and across countries, apart from women's participation in non-farm enterprises being more common in Nigeria and Tanzania. The population weighted cross-country gender difference in off-farm employment stands at 9 percentage points, but this has declined over time in most countries. A substantial share of the population, amounting to about 39 million individuals across the five countries, is estimated to have entered and exited employment between 2010 and 2016, pointing to the dynamic nature of off-farm employment. Drivers of entry into off-farm employment and continued employment are country- and gender-specific, with demographic factors, occurrence of shocks, and job characteristics emerging as the most important determinants.
Employment --- Employment and Unemployment --- Gender --- Gender and Development --- Gender Gap --- Inequality --- Labor Markets --- Labor Mobility --- Non-Farm Employment --- Off-Farm Employment --- Poverty Reduction --- Social Protections and Labor --- Wages --- Wages Compensation and Benefits --- Youth
Book
Year: 2019 Publisher: Washington, D.C. : The World Bank,
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This paper examines the effect of fertility on parental labor force participation in a developing country in the Balkans, with particular attention to the intervening role of childcare provided by grandparents in extended families. To address the potential endogeneity in the fertility decision, the analysis exploits the Albanian parental preference for having sons combined with the siblings' sex-composition instrument as an exogenous source of variation. Using a repeated cross-section of parents with at least two children, the analysis finds a positive and statistically significant effect of fertility on parental labor supply for parents who are more likely to be younger, less educated, or live in extended families. The IV estimates for mothers show that they increase labor supply, especially hours worked per week and the likelihood of working off-farm. Similarly, fathers' likelihood of working off-farm and having a second occupation increase as a consequence of further childbearing. The heterogeneity analysis suggests that this positive effect might be the result of two plausible mechanisms: childcare provided by non-parental adults in extended families and greater financial costs of maintaining more children.
Childcare --- Demographics --- Economics of Education --- Education --- Educational Attainment --- Fertility --- Health, Nutrition and Population --- Instrumental Variables --- Labor Force Participation --- Labor Markets --- Labor Supply --- Off-Farm Employment --- Rural Development --- Rural Labor Markets
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