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Public Works in Ethiopia. Crowding out on-farm labor?

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  • Rodrigo, María F

Abstract

This paper analyzes the impact of Public Works (PW) from the Productive Safety Net Program (PSNP) in the agricultural regions of Ethiopia. In particular, based on a household model with two inputs, I explore the effects of the program on capital and labor decisions using the Ethiopian Rural Household Surveys (ERHS) from 2004 and 2009. Results indicate that PW did not have an effect crowding out adult labor on- farm but it reduced child labor. Furthermore, after analyzing the relationship between capital and labor inputs, there is not evidence suggesting that the program had an effect on the demand of capital inputs (i.e., units of livestock and value of farming tools).

Suggested Citation

  • Rodrigo, María F, 2013. "Public Works in Ethiopia. Crowding out on-farm labor?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150806, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150806
    DOI: 10.22004/ag.econ.150806
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    References listed on IDEAS

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    1. Rashid, Shahidur & Taffesse, Alemayehu Seyoum, 2009. "Grain Markets and Large Social Transfers - An Analysis of Productive Safety Net Program in Ethiopia," 2009 Conference, August 16-22, 2009, Beijing, China 51764, International Association of Agricultural Economists.
    2. Sadoulet, Elisabeth & de Janvry, Alain & Benjamin, Catherine, 1996. "Household Behavior With Imperfect Labor Markets," CUDARE Working Papers 25044, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Daniel Gilligan & John Hoddinott & Alemayehu Seyoum Taffesse, 2009. "The Impact of Ethiopia's Productive Safety Net Programme and its Linkages," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1684-1706.
    4. Andersson, Camilla & Mekonnen, Alemu & Stage, Jesper, 2011. "Impacts of the Productive Safety Net Program in Ethiopia on livestock and tree holdings of rural households," Journal of Development Economics, Elsevier, vol. 94(1), pages 119-126, January.
    5. Quisumbing, Agnes R. & Yohannes, Yisehac, 2005. "How fair is workfare? gender, public works, and employment in rural Ethiopia," Policy Research Working Paper Series 3492, The World Bank.
    6. Coll-Black, Sarah & Gilligan, Daniel O. & Hoddinott, John F. & Kumar, Neha & Taffesse, Alemayehu Seyoum & Wiseman, William, 2011. "Targeting food security interventions when “everyone is poor”: The case of Ethiopia’s Productive Safety Net Programme," ESSP working papers 24, International Food Policy Research Institute (IFPRI).
    7. Bogale, Ayalneh & Genene, Wubshet, 2012. "Impact of Productive Safety Net Financed Livestock Credit on Food Security and Poverty Status of Rural Households in Ethiopia: A Simulation Approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126157, International Association of Agricultural Economists.
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    Keywords

    Farm Management; International Relations/Trade; Labor and Human Capital; Public Economics;
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