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International Journal of Research in Social Sciences
Year : 2015, Volume : 5, Issue : 2
First page : ( 15) Last page : ( 30)
Online ISSN : 2249-2496.

Effect of non-farm income diversification on household poverty in egbedore local government area of Osun state

Titilola Ogunniyi Laudia, Olawuyi S.O. Adepoju Adenike Adebusola

Department of Agricultural Economics and Extension, Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria

Online published on 4 March, 2016.

Abstract

The study was carried out to examine the effect of non-farm income diversification on household poverty. Data used for this study was collected from a total of 143 households using a multistage random sampling technique. The main tools of analysis for this study include descriptive statistics, FGT model, Probit and Tobit regression and Gini-coefficients. The estimated poverty line in the study area is 4,655.17Naira and about 68% of the non participants in income diversification were categorized as core poor. FGT result reveals that poverty is more pervasive, severe and deeper among the non participant relative to their counterpart. About 20% of the participant claim to diversify in other to increase their household income. All the households derive income from farming activities which accounted for over 2/3 of the total household income. Income inequality is also more pronounced among households engaging in non-agricultural activities. The determinants of participation in non-farm activities are age, household size and education which were found to be statistically significant at 1% and 5% level of significance. Also, these factors as well as farm size influence household income considering the the different sources of income available to households in the study area. The study recommends the need for encouraging households to participate in non-farm activities to reduce poverty thereby improving household living standard.

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Keywords

Income inequality, non-farm activities, diversification, poverty level.

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