Empirical studies across many developing countries routinely document a positive correlation between participation in rural nonfarm employment and households’ wealth or income. This paper explores whether nonfarm employment leads to higher consumption expenditure growth in Ethiopia. We find that: (1) households’ consumption expenditure growth is positively correlated with the initial share of nonfarm income; (2) the growth elasticity of nonfarm income share is higher for wealthier households; and (3) the main source of growth for nonfarm participants comes from the higher rates of return participants enjoy on their human and physical capital.
Family Law Reform, Employment, and Women’s Political Participation in Ethiopia
Lovise Aalen, Andreas Kotsadam, Espen Villanger
Social Politics: International Studies in Gender, State & Society
Active private sector development policies revisited: Impacts of the Ethiopian industrial cluster policy
Tigabu Getahun and Espen Villanger
Journal of Development Studies
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