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Determinants of Household Demand for and Supply of Farm Labour in Rural Ethiopia

Author

Listed:
  • Amsalu Bedemo

    (Assosa University)

  • Kindie Getnet

    (International Water Management Institute)

  • Belay Kassa

    (Haramaya University)

Abstract

Typical farm households in rural areas of developing countries allocate their labour resource among own-farm work and off-farm (market) activities in response to different factors. This study examines determinants of household demand for and supply of farm labour in rural western Ethiopia using household sample survey data collected during 2010/11 agricultural season. The instrumental variable estimation technique used to analyse the data indicates the importance of shadow wage, shadow income, and demographic factors at influencing farm labour supply. Similarly, the demand for farm labour is significantly affected by farm attributes, off-farm income and family composition. The findings with regards to farm labour supply imply that measures taken to influence returns to labour on farm may produce different results for labour market participant and non-participant households. Moreover, increasing the off-farm employment opportunities can help release the liquidity constraint and thus promote increased use of hired farm labour.

Suggested Citation

  • Amsalu Bedemo & Kindie Getnet & Belay Kassa, 2013. "Determinants of Household Demand for and Supply of Farm Labour in Rural Ethiopia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(3), pages 351-367.
    • Handle: RePEc:ozl:journl:v:16:y:2013:i:3:p:351-367
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    References listed on IDEAS

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    1. Bagamba, Fredrick & Burger, Kees & Kuyvenhoven, Arie, 2007. "Determinants of smallholder farmer labour allocation decisions in Uganda," 106th Seminar, October 25-27, 2007, Montpellier, France 7920, European Association of Agricultural Economists.
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    5. Gebremedhin, Berhanu & Swinton, Scott M., 2001. "Reconciling food-for-work project feasibility with food aid targeting in Tigray, Ethiopia," Food Policy, Elsevier, vol. 26(1), pages 85-95, February.
    6. Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82.
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    Citations

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    Cited by:

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    2. CAMARA, Alhassane, 2017. "Market participation of smallholders and the role of the upstream segment: evidence from Guinea," MPRA Paper 78903, University Library of Munich, Germany, revised May 2017.
    3. Tekalign Gutu Sakketa & Nicolas Gerber, 2020. "Rural Shadow Wages and Youth Agricultural Labor Supply in Ethiopia: Evidence from Farm Panel Data," Research in Labor Economics, in: Change at Home, in the Labor Market, and On the Job, volume 48, pages 61-105, Emerald Group Publishing Limited.
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    5. David Sedik & Fujin Yi & Richard T. Gudaj, 2020. "Implications of Chinese Farmers in the Russian Far East," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(5), pages 1615-1622, November.

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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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