This study evaluated the impact of productive safety net program on the livelihood of rural households of Libo Kemkem woreda. Towards this end, data were collected from 210 randomly selected households of which 119 were program participants and 91 were non-program participant’s selected from four Kebeles of the woreda, where the productive safety net program was implemented.
Data were analyzed using descriptive statistics and econometric analysis. Results from descriptive statistics revealed that among program participants and non participants, the total annual income has increased averagely by 14467.2 birr and 11469.2 birr. The average livestock holding was 3.7230 TLU and 1.4878 TLU for participant and non-participant households, respectively. Thus, the program enables them to through avoidance of forced disposal in response to shock (increase) their livestock holdings.
Applying a propensity score matching technique, it was found that the program has significantly increased participating households’ total income by 59.1%, livestock asset by 14.09% and consumption expenditure by 22.61% compared to non-participating households.
The estimated results also revealed that, households in the program has better access to credit, small land size and better access on agricultural extension, access to aid and less access to irrigation. Finally, physical and biological conservation measures should be widely incorporated, access to extension service for the utilization of new technologies and for policy concern. Generally both households increase their livelihood activities respectively interms of livelihood.
Table of Contents
1. INTRODUCTION
1.1. Background of the study
1.2. Statement of the problem
1.3. Research Questions
1.4. Objective of the study
1.5. Significance of the study
1.6. Scope and Limitation of the Study
1.7. Organization of the thesis
2. LITERATURE REVIEW
2.1. Introduction
2.2. Theoretical Literature Review
2.2.1. Definitions and Concepts of PSNP and livelihood
2.2.2. Productive safety net program of Ethiopia
2.2.3. Indicators of sustainable livelihoods
2.2.4. PSNP and Risk Management
2.3. The Empirical Studies of the Impact of PSNP
2.3.1. The Social and Economic Impacts of PSNP in Africa
2.3.2. Social and Economic Impacts of PSNP in Ethiopia
2.4. Impact assessement methods
2.4.1. Experimental evaluation method
2.4.2. Non experimental evaluation method
2.4.3. Quasi Experimental evaluation method
2.4.4. Methodologies to construct counter factual groups
2.4.5. Why PSM method for the study
2.4.6. Steps in the applications of PSM method
3. RESEARCH METHODOLOGY
3.1. Description of the study area
3.1.1. Climate and agroecology
3.1.2. Land use and farming system
3.1.3. Livestock resource
3.1.4. Rural finance
3.1.5. Crop production
3.2. Descriptions of PSNP in the woreda
3.3. Sources and Methods of Data Collection
3.4. Sample Size and Method of sampling design
3.5. Methods of Data Analysis
3.5.1. Descriptive Data Analysis
3.5.2. Econometric Analysis
3.6. Definition and measurement of Variables
3.6.1. Dependent variable
3.6.2. Outcome variables
3.6.3. Independent variables
3.7. Model Diagnostics
3.7.1. Multicollinearity Test
3.7.2. Hetroscedasticity Test
4. RESULT AND DISCUSION
4.1. Descriptive results
4.1.1. Demographic characteristics of sample households
4.1.2. Description of sample households for categorical variables
4.1.3. Descriptive statistics of outcome variables
4.2. Econometric results
4.2.1. Propensity scores estimation
4.2.2. Imposing common support region
4.2.3. Choosing a matching algorithm
4.2.4. Balancing test
4.2.5. Treatment effect on the treated
4.2.6. Sensitivity analysis
5. CONCLUSION AND RECOMMENDATIONS
5.1.Conclusion
5.2.Recomendation
Research Objectives and Themes
This study aims to evaluate the impact of the Productive Safety Net Program (PSNP) on the livelihoods of rural households in the Libo Kemkem woreda of Ethiopia. By employing Propensity Score Matching (PSM), the research seeks to compare outcomes—specifically total annual income, livestock holdings, and consumption expenditure—between program participants and non-participants to determine the efficacy of the interventions in enhancing household welfare.
- Impact analysis of the PSNP on rural household income and asset formation.
- Evaluation of PSNP's effectiveness in stabilizing and improving consumption expenditure.
- Assessment of factors influencing rural household participation in the safety net program.
- Methodological application of Propensity Score Matching (PSM) for counterfactual analysis in development programs.
- Strategic recommendations for livelihood improvement through targeted agricultural and social policies.
Excerpt from the Book
1.2. Statement of the Problem
The interest in developing a safety net program in Ethiopia grows out of the fact that the emergency system in Ethiopia was failing to stabilize livelihoods. Lives were being saved but, livelihoods continued to erode. As a consequence, more and more people were in need, resulting in an overwhelming humanitarian caseload. Each emergency resulted in further asset loss and destitution. As the population lost productive assets and became less able to cope, minor events had the impact of major shocks (SC-UK, 2008). Both government and donors became convinced of the need to this program. For donors, increased interest in budget support mechanisms as well as growing support for social protection also played a part. For the government, concern that the emergency response system was encouraging dependency syndrome and unease about Ethiopia’s image as a ‘basket case’ were strong incentives (SC-UK, 2008).
In Amhara region in general, and in Libo Kemkem woreda in particular, smallholder farmers are characterized by subsistence production and suffered from complex and interrelated socio-economic problems. Shortage of farm land, recurrent drought, and environmental degradation are the most significant problems that challenge the lives of the population (PSNP PIM, 2015). Twenty two kebeles out of the twenty nine kebeles of the woreda are classified as food insecure kebeles. Among others, the regional government has allocated huge amount of resources to protect the rural communities’ asset depletion and diversifications of rural income of households. Although efforts have been made to raise agricultural crop yield, the food insecurity problem is still a major challenge in the woreda, in particular. To increase the productivity of land, the office of agriculture has been promoting adoption and diffusion of improved technologies by farmers. In particular, farmers have been advised to adopt several physical soil conservation measures.
The PSNP is a public program through which food-insecure people are employed in public work for five days a month during the agricultural slack seasons. This is intended to enable households to smooth consumption so that they will not need to sell productive assets in order to overcome food shortages. The public work is also intended to create valuable public goods; moreover, by reducing seasonal liquidity constraints, it is intended to stimulate investments (Anderson et al., 2009).
Summary of Chapters
1. INTRODUCTION: Provides the background of Ethiopia's economic growth and poverty challenges, outlining the rationale, research questions, and objectives of the PSNP study.
2. LITERATURE REVIEW: Explores theoretical concepts of PSNP, sustainable livelihoods, and empirical studies on impact assessment methods, focusing on the justification for using PSM.
3. RESEARCH METHODOLOGY: Details the study area, data collection sources, sampling design, variable definitions, and the specific econometric model (PSM) used for analysis.
4. RESULT AND DISCUSION: Presents descriptive statistics and econometric results regarding the impact of PSNP on income, livestock holdings, and consumption, including sensitivity analysis.
5. CONCLUSION AND RECOMMENDATIONS: Synthesizes the main findings and provides policy recommendations to enhance the effectiveness of livelihood improvements in the woreda.
Keywords
Productive Safety Net Program, PSNP, Ethiopia, Libo Kemkem, Livelihood, Propensity Score Matching, Impact Assessment, Household Income, Livestock Holding, Consumption Expenditure, Food Security, Poverty Reduction, Rural Development, Smallholder Farmers, Econometric Analysis.
Frequently Asked Questions
What is the primary objective of this research?
The research aims to empirically evaluate the impact of the Productive Safety Net Program (PSNP) on the livelihoods of rural households in Libo Kemkem, specifically examining changes in their income, livestock assets, and consumption levels.
Which specific themes are addressed?
The work covers household livelihood security, factors influencing participation in social safety nets, the efficacy of public works programs, and sustainable livelihood indicators.
What research methodology is employed?
The study utilizes both descriptive statistics and an econometric Propensity Score Matching (PSM) technique to compare participant and non-participant households.
What are the core contents of the main chapters?
The main body includes a literature review of theoretical and empirical studies, a description of the methodology and study area, an analysis of the results through PSM, and final recommendations based on the findings.
What characterizes the PSNP participants in this study?
Participants are largely smallholder farmers in food-insecure kebeles who are generally characterized by smaller landholdings and higher dependence on aid compared to non-participants.
Which keywords best describe the thesis?
The research is best characterized by terms such as PSNP, impact assessment, livelihood, rural development, propensity score matching, and food security in Ethiopia.
Why was the Propensity Score Matching (PSM) method chosen?
PSM was selected because it is effective in non-experimental settings for constructing a counterfactual group, allowing for a comparative assessment of outcomes between program participants and non-participants where baseline data is absent.
What were the major findings regarding the impact of the program?
The study found that program participants experienced significantly higher total annual income (59.1%), increased livestock assets (14.09%), and higher consumption expenditure (22.61%) compared to non-participants.
- Citation du texte
- Tsegaye Denberie (Auteur), 2018, Impacts of productive safety net program on the livelihoods of rural households, Munich, GRIN Verlag, https://www.grin.com/document/412452
