Version 1
: Received: 2 August 2023 / Approved: 3 August 2023 / Online: 4 August 2023 (07:20:37 CEST)
How to cite:
Tegebu, F.N.; Seid, E.H. Youth Employment and Dynamics in Rural Non-Farm Enterprises (RNFE) in Ethiopia. Preprints2023, 2023080344. https://doi.org/10.20944/preprints202308.0344.v1
Tegebu, F.N.; Seid, E.H. Youth Employment and Dynamics in Rural Non-Farm Enterprises (RNFE) in Ethiopia. Preprints 2023, 2023080344. https://doi.org/10.20944/preprints202308.0344.v1
Tegebu, F.N.; Seid, E.H. Youth Employment and Dynamics in Rural Non-Farm Enterprises (RNFE) in Ethiopia. Preprints2023, 2023080344. https://doi.org/10.20944/preprints202308.0344.v1
APA Style
Tegebu, F.N., & Seid, E.H. (2023). Youth Employment and Dynamics in Rural Non-Farm Enterprises (RNFE) in Ethiopia. Preprints. https://doi.org/10.20944/preprints202308.0344.v1
Chicago/Turabian Style
Tegebu, F.N. and Edris Hussein Seid. 2023 "Youth Employment and Dynamics in Rural Non-Farm Enterprises (RNFE) in Ethiopia" Preprints. https://doi.org/10.20944/preprints202308.0344.v1
Abstract
Using LSMS-ISA panel data, we analyzed determinants of diversification into Rural Non-Farm Enterprises (RNFEs) and dynamics of the sector by studying the transition between farming and both low- and high-return RNFEs. We found that diversification into RNFE is determined by household characteristics mainly age and gender of the household head, whereas initial capital endowments such as assets, human capital, land and livestock significantly affect level of participation than entry into RNFE. Furthermore, analysing dynamics of RNFE separately for the youth and matured households, our study finds that continuous participation in RNFE is higher among the youth than among matured households. Similarly, initial capital endowments mainly educational level and access to credit are important factors for the youth to transit to high return RNFE, implying that entrepreneurial skills development and access to finance that enhance investments and gradual accumulation of capital are vital for the youth to benefit from RNFEs. Moreover, shocks that affect agricultural productivity are significant in increasing the probability of transition out of high-return RNFE signifying the need for social protection measures to ensure growth of RNFEs.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
