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Risk Aversion Behavior of Farmers and The Role Of Credit Usage In Kobbo District Of Ethiopia


Rural households in semi-arid areas have to cope with extreme income variability. Household survival depends on the ability to anticipate and to cope with this income variability. This study examines the extent to which rainfall and rainfall variability affect off-farm labor supply in Northern Ethiopia, Tigray. A four year household level data (1996, 1997, 2001 and 2002) on 199 households and 10 years district level rainfall data for two districts was used for analysis.Results confirm that rainfall and rainfall variability increases the probability of off-farm work participation and off-farm labor supply. This result further suggests that interventions in the labor market through public works programs may significantly improve the economic well-being and livelihood of rural households

Corporate Author: 
Getnet Alemu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
Primary Descriptors: 

labor supply

Secondary Descriptor: 


Geographic Descriptors: 
Ethiopia, Tigray
Cataloge Date: 
Broad Subject heading: 
rainfall variability
Call Number: 
330.963 PRO 2009
Serial Key Title: 
Proceedings of the Sixth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-05-27 23:09:00
Forum or Discussion date: 
2013-02-27 15:02:19
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: