This paper uses panel data from the Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA) for Uganda to assess the farm-level effects of non-farm employment on agricultural intensification and productivity change. A sample selection model is used to account for both unobserved heterogeneity and potential simultaneity between agricultural production and non-farm income. Results show that non-farm employment can have differential impacts on farm technology intensity and productivity. Non-farm income is found to have a positive impact on farm hired labor and improved seed intensity; a negative effect on on-farm family labor use; and no significant impact on fertilizer, soil water management, and joint use of farm technologies. The econometric evidence also indicates that agricultural productivity declines as non-farm income increases. Taken together, our findings reveal important tradeoffs between non-farm employment and income and farm productivity growth under smallholder agriculture. The results indicated that targeted policies are required to reduce these potential tradeoffs between non-farm employment and agricultural intensification and productivity change.
Project leader: Mulubrhan Amare
Project researchers:
| Authors | Co-Authors | Title of paper | Title of Economic Review | Bibliographic references |
|---|---|---|---|---|
| Mulubrhan Amare | Bekele Shiferaw | Nonfarm employment, agricultural intensification, and productivity change: empirical findings from Uganda | Agricultural Economics |
No working papers.
No policy briefs.
| Title | Modified | Size | Comments | Recommendations | |
|---|---|---|---|---|---|
| Non-farm Employment, Agricultural Intensification and Productivity Change: Empirical Findings from Uganda | 2018-02-15 | 2.09MB | 0 | 0 |
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