DETERMINANTS OF HOUSEHOLD INCOME WITH SPECIAL EMPHASIS TO RURAL WOMEN’S TIME USE: CASE STUDY OF DERA AND HARAMAYA DISTRICTS, OROMIA REGIONAL STATE, ETHIOPIA

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