Effect of Nonfarm Income on Household Food Security in Eastern Tigrai, Ethiopia: An Entitlement Approach

Abstract

The study attempts to investigate the link between food security and nonfarm employment using the survey data collected from 151 randomly selected households from six villages of Woreda Gantafeshum, Eastern Tigrai, Ethiopia. Considering the objective of the study, given a household participated in nonfarm employments and its effect on food security, the Heckman selection model (two stage) is used.We examine first the household decision with respect to participation in nonfarm employment using pobit model. We found that land size, age, family size, special skill, electricity, credit, distance to the nearest market and access to irrigation are the most influencing variables in determining farmers to participate in nonfarm activities. Further we examine the effect of nonfarm employment on households food security. Our study indicates that nonfarm employment provides additional income that enables farmers to spend more on their basic needs include: food, education, closing and health care. The result of the study implied that nonfarm employment has a role which is significant in maintaining household food security.

Key words: nonfarm employments; food security; probit model: Heckman selection model; Eastern Tigrai