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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Income Portfolios in Rural Ethiopia and Tanzania: Choices and Constraints
Authors:Dercon, StefanISNI
Krishnan, PramilaISNI
Year:1996
Periodical:Journal of Development Studies
Volume:32
Issue:6
Period:August
Pages:850-875
Language:English
Geographic terms:Ethiopia
Tanzania
Subjects:farmers
household income
rural households
Economics and Trade
External link:https://doi.org/10.1080/00220389608422443
Abstract:Peasant households in developing countries typically earn income from many different sources. This article, which is based on data from surveys conducted in Ethiopia and Tanzania in 1989-1990, suggests that the different income portfolios held by households cannot be explained by their behaviour towards risk. Behaviour towards risk does play a role, but income diversification is better explained by differences in ability, location, and access to credit. The article focuses on three broad sources of income: cropping, livestock rearing and off-farm activities. A logit analysis of households with different income portfolios, controlling for the effects of location, suggests that entry into high-return activities is determined by investment in particualr skills or by access to capital. App., bibliogr., notes, ref., sum.
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