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Occupation Diversification in a Unitary Household Model: Evidence from survey data


The aim of this study is to investigate the demographic, social and economic determinants of household occupation diversification in rural Ethiopia. To analysis the determinants of overall occupation diversification, Heckman two-stage technique that corrects for selectivity bias is estimated. Seemingly unrelated regression model is also estimated for all occupation categories simultaneously. To take advantage of the count nature of the data, for each occupation category appropriate count data models are also estimated. Six occupation categories are considered in this study: Farming, domestic work, skilled professional activity, schooling, trading and unemployment. The results of the study show that for a representative household most demographic factors, except number of male adults and working adults, lower the number of family members engaged in farming. Similarly, for domestic work, except number of female adults and family size, most demographic factors lower number of household members participating in this activity. Number of family members who can read and write, and agricultural risk factors promote households to engage in skilled professional activities and to send more kids to school. There is also evidence that agricultural activities compete for family labor in trading, schooling and skilled professional activities. Unobserved regional factors are also the major determinants of schooling, trading and skilled professional activities. The argument that households tend to send more males to school than females is not supported in this study.

Corporate Author: 
Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
Primary Descriptors: 

Occupation, diversification

Secondary Descriptor: 

Count data models

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Cataloge Date: 
Broad Subject heading: 
Call Number: 
330.963 PRO 2004
Serial Key Title: 
Proceedings of the First International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-05-27 23:04:00
Forum or Discussion date: 
2013-02-27 14:55:41
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
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