Abstract:
This study was aimed to investigate the determinants of household income with special
emphasis to rural women’s time use. Multistage stratified random sampling technique was
used to select a sample of 234 rural farmer women from Dera and Haramaya districts. A
structural questionnaire was used to collect data from sampled rural farmer women based on
cross sectional survey of 2015. The collected data was analyzed using descriptive statistics
(percentage, mean and standard deviation), multiple linear regression analysis and
Propensity score matching model. The results from multiple linear regression analysis using
ordinary least square estimation showed that residence dummy, women household head,
women year of education, livestock holding, farm size and access to credit were significant
variables affecting household income. In this study, time use was found endogenous variable
as identified by using Wu-Hausman test. Therefore, two stage least square estimation was
used to overcome the endogeneity problem. The result using two stage least square estimation
showed that time use significantly and positively affects household income. In addition, using
two stage least square estimation residence dummy, women household head, women year of
education, livestock holding, farm size and access to credit were significant variables affecting
household income. Propensity score matching model was used to analyze the impact of women
time use on household income. Being not time poor had about 479.298 birr greater yearly
household income as compared to time poor women using average treatment on the treated
with the Kernel matching methods. Future policy should focus on awareness creation on
designing program to increasing time use, increase land productivity using modern
technologies, designing development strategy for livestock sector, strengthening and
establishing formal education, and facilitate formal credit among the rural women
