Browsing by Author "Nathan, I."
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Item Off-farm employment and income poverty in favourable agro-climatic areas of Tanzania: evidence from Kilombero Valley(The International Institute for Science, Technology and Education (IISTE), 2016-12) Msinde, J.; Urassa, J. K.; Nathan, I.Income poverty in Tanzania as elsewhere in developing countries is predominantly a rural phenomenon and affects largely households relying on subsistence farming. This is despite the fact that poverty reduction strategies have devoted increasing attention on the role farm employment in enhancing household income. This paper argues that, off-farm employment may have potential to contribute to reduction of rural households’ income poverty. Hence the main objective of the paper is set to examine effects of off-farm employment on income poverty. Data was collected from a random sample of 309 households in the first quarter of 2014 in five villages of Kilombero Valley, Tanzania using a structured questionnaire. Income poverty was analysed using the Foster-Greer-Thorbecke (FGT) poverty index and two stage least square (2SLS) regression. Households with off-farm employment income were found to be less poor based on all the three FGT parameters which are incidence, depth and severity of poverty. Similarly, estimations from the 2SLS model showed that holding other factors constant, engagement in off-farm employment led to increased total households income, and hence a significant predictor of households’ poverty status. Other variables which were significant are; crop shock, farmland location and land ownership. It is thus recommended that, rural development policies should be broad based to consider the diversity of households’ income strategies including engagement in rural off-farm employment activities. Increasing opportunities for off-farm income generation may be a route out of poverty among rural householdsItem Off-farm employment response to idiosyncratic shocks to crop income in Kilombero valley, Tanzania(2018) Msinde, J.; Urassa, J. K; Nathan, I.This paper investigates the mechanism in which off-farm employment offsets the effect of crop income shocks. Using data collected from paddy farming households in Kilombero Valley, Tanzania, we examine the interaction between seasonal farm and off-employment activities and how this interaction enables households to address crop income shock. A set of participatory rural appraisal approaches supported by economic estimation is used. Results from focus group discussions and seasonal calendars show that, availability of some off-farm incomes such as those related to farm wage do not covary with farm income, a feature that is critical for ex post shock strategies as it enables households to smooth income during the farming season. Evidence from econometric estimation showed that engagement in non-farm self-employment, which is largely available during the farming off-season, plays an essential risk management role and cushions against crop-based income shocks. These findings imply that insurability of off-farm employment depends not only on the type of off-farm activities, but is also shaped by seasonality. Therefore, given the prevailing condition of imperfection in credit and crops insurance marketin rural areas, formulation of policies that enhance growth and diversification of income sources out of farming is of utmost importance in addressing crop related susceptibility.Item Off-farm employment response to idiosyncratic shocks to crop income in Kilombero valley, Tanzania(WDR. wloclawek, 2018) Msinde, J.; Urassa, J. K; Nathan, I.This paper investigates the mechanism in which off-farm employment offsets the effect of crop income shocks. Using data collected from paddy farming households in Kilombero Valley, Tanzania, we examine the interaction between seasonal farm and off-employment activities and how this interaction enables households to address crop income shock. A set of participatory rural appraisal approaches supported by economic estimation is used. Results from focus group discussions and seasonal calendars show that, availability of some off-farm incomes such as those related to farm wage do not covary with farm income, a feature that is critical for ex post shock strategies as it enables households to smooth income during the farming season. Evidence from econometric estimation showed that engagement in non-farm self-employment, which is largely available during the farming off-season, plays an essential risk management role and cushions against crop-based income shocks. These findings imply that insurability of off-farm employment depends not only on the type of off-farm activities, but is also shaped by seasonality. Therefore, given the prevailing condition of imperfection in credit and crops insurance marketin rural areas, formulation of policies that enhance growth and diversification of income sources out of farming is of utmost importance in addressing crop related susceptibility.