Does access to land matters in the household decisions to nonfarm livelihoods in Ethiopia?
Nigussie
In this study, we assume that HHs choose one or a combination of these available options to maximize utility subject to their capabilities and access to assets. Therefore, this paper attempts to answer the following research questions: What determine the livelihood choice of the HHs? How access to land influences the choices of rural livelihood and livelihood transition? The main objective of this paper is therefore, to investigate what drivers the HHs’ livelihood choices toward RNFLs by adopting a bivariate random probit model with particular emphasis on the effect of access to land on the choices of livelihood strategies. This paper contributes to the literature in several ways. First, the paper examines empirically, the effect of access to land on livelihood transition in Ethiopia. Some previous studies in Ethiopia that have focused on nonfarm sector are either regional (Ali & Peerlings, 2012; Berg & Kumbi, 2006; Carswell, 2000; Holden, et al., 2004; Dessie & Raman, 2017; Woldenhanna & Oskam, 2001) or focused only on drought-prone villages (Block & Webb, 2001; Dercon & Krishnan, 1998). For instance, Bezu & Holden (2014) examined land access and livelihood choices of rural youth in Southern Ethiopia and found that limited access to agricultural land and land market restrictions, forced the youth to abandon agriculture in search of out-migration. Second, since the scope of this paper is at national level, it can give a broader picture about all rural HHs in Ethiopia. Third, unlike previous studies, we include access to capital specifically access to land policies on the transition in livelihoods strategies of rural HHs.