IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/122180.html
   My bibliography  Save this paper

Exploring the Relationship between Formal Employment and Household Welfare: Evidence from Rural Tanzania

Author

Listed:
  • Rajaona, Ambinistoa
  • Limbe, Medad
  • Ali, Mustaf

Abstract

This study investigates the impact of formal employment on household welfare in rural Tanzania using data from the 2012/13 Tanzania National Panel. Distance to major roads is employed as an instrumental variable to estimate the local area treatment effect (LATE) of formal employment participation on household consumption levels. Results from the first stage show that as distance from major roads increases the likelihood of participating in formal employment also declines. The second stage results reveal that households that are engaged in formal employment have significantly higher consumption levels compared to households to non-participating households. The findings highlight the crucial role that improving road infrastructure can play in promoting access to formal employment opportunities and improving living standards in rural areas.

Suggested Citation

  • Rajaona, Ambinistoa & Limbe, Medad & Ali, Mustaf, 2024. "Exploring the Relationship between Formal Employment and Household Welfare: Evidence from Rural Tanzania," MPRA Paper 122180, University Library of Munich, Germany, revised 01 Nov 2024.
    • Handle: RePEc:pra:mprapa:122180
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/122180/1/MPRA_paper_122180.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Moussa P. Blimpo & Robin Harding & Leonard Wantchekon, 2013. "Public Investment in Rural Infrastructure: Some Political Economy Considerations," Journal of African Economies, Centre for the Study of African Economies, vol. 22(suppl_2), pages -83, August.
    2. Stifel, David, 2010. "The rural non-farm economy, livelihood strategies and household welfare," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 4(1), March.
    3. Ma, Wanglin & Vatsa, Puneet & Zheng, Hongyun & Rahut, Dil Bahadur, 2022. "Nonfarm employment and consumption diversification in rural China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 582-598.
    4. Aggarwal, Shilpa, 2018. "Do rural roads create pathways out of poverty? Evidence from India," Journal of Development Economics, Elsevier, vol. 133(C), pages 375-395.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gertler, Paul J. & Gonzalez-Navarro, Marco & Gračner, Tadeja & Rothenberg, Alexander D., 2024. "Road maintenance and local economic development: Evidence from Indonesia’s highways," Journal of Urban Economics, Elsevier, vol. 143(C).
    2. Gertler, Paul J & Gonzalez-Navarro, Marco & Gracner, Tadeja & Rothenberg, Alexander, 2023. "Road Maintenance and Local Economic Development," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt38m633q0, Department of Agricultural & Resource Economics, UC Berkeley.
    3. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    4. Das, Abhiman & Ghani, Ejaz & Grover, Arti & Kerr, William & Nanda, Ramana, 2024. "JUE insight: Infrastructure and Finance: Evidence from India’s GQ highway network," Journal of Urban Economics, Elsevier, vol. 142(C).
    5. Abu-Qarn, Aamer & Lichtman-Sadot, Shirlee, 2019. "Connecting Disadvantaged Communities to Work and Higher Education Opportunities: Evidence from Public Transportation Penetration to Arab Towns in Israel," IZA Discussion Papers 12824, Institute of Labor Economics (IZA).
    6. Bird, Julia & Straub, Stéphane, 2020. "The Brasília experiment: The heterogeneous impact of road access on spatial development in Brazil," World Development, Elsevier, vol. 127(C).
    7. Noah Kaiser & Christina K. Barstow, 2022. "Rural Transportation Infrastructure in Low- and Middle-Income Countries: A Review of Impacts, Implications, and Interventions," Sustainability, MDPI, vol. 14(4), pages 1-48, February.
    8. Akpan, Uduak & Morimoto, Risako, 2022. "An application of Multi-Attribute Utility Theory (MAUT) to the prioritization of rural roads to improve rural accessibility in Nigeria," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    9. Saumyabrata Chakrabarti & Vivekananda Mukherjee, 2022. "Role of transport infrastructure in birth of census towns in West Bengal," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 593-616, June.
    10. Yasuharu Shimamura & Satoshi Shimizutani & Eiji Yamada & Hiroyuki Yamada, 2023. "On the inclusiveness of rural road improvement: Evidence from Morocco," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1721-1745, August.
    11. Kanika Mahajan & Shekhar Tomar, 2021. "COVID‐19 and Supply Chain Disruption: Evidence from Food Markets in India†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 35-52, January.
    12. Damoah, Kaku Attah & Giovannetti, Giorgia & Marvasi, Enrico, 2022. "Do country centrality and similarity to China matter in the allocation of belt and road projects?," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 660-674.
    13. Lu, Wencong & Horlu, Godwin Seyram Agbemavor Kwasi, 2019. "Transition of small farms in Ghana: perspectives of farm heritage, employment and networks," Land Use Policy, Elsevier, vol. 81(C), pages 434-452.
    14. Hossein Azadi & Eric Vanhaute, 2019. "Mutual Effects of Land Distribution and Economic Development: Evidence from Asia, Africa, and Latin America," Land, MDPI, vol. 8(6), pages 1-15, June.
    15. Subhashree Mohapatra & Dileep Mohanachandran & Gaurav Dwivedi & Sujeet Kesharvani & V. S. K. V. Harish & Shrey Verma & Puneet Verma, 2023. "A Comprehensive Study on the Sustainable Transportation System in India and Lessons to Be Learned from Other Developing Nations," Energies, MDPI, vol. 16(4), pages 1-21, February.
    16. Federico Pablo-Martí & Ángel Alañón-Pardo & Angel Sánchez, 2021. "Complex networks to understand the past: the case of roads in Bourbon Spain," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(3), pages 477-534, September.
    17. Basistha, Ahana & Dhillon, Amrita & Chaudhuri, Arka Roy, 2024. "Elections and Rural Road Construction: Evidence from India," CAGE Online Working Paper Series 712, Competitive Advantage in the Global Economy (CAGE).
    18. Roberto Bonfatti & Yuan Gu & Steven Poelhekke, 2019. "Priority Roads: The Political Economy of Africa's Interior-to-Coast Roads," CESifo Working Paper Series 7478, CESifo.
    19. A. Ganesh Kumar & Varun Kumar Das, 2020. "Do storage and structural factors determine agricultural commercialization in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2020-004, Indira Gandhi Institute of Development Research, Mumbai, India.
    20. Vanden Eynde, Oliver & Wren-Lewis, Liam, 2021. "Complementarities in Infrastructure: Evidence from Rural India," CEPREMAP Working Papers (Docweb) 2104, CEPREMAP.

    More about this item

    Keywords

    employment; welfare; infrastructure; tanzania; instrumental variables; LATE;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:122180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.