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\hypersetup{pdftitle={Are Rural Youth Disengaging from Agriculture? Empirical Evidence from Ethiopia},pdfauthor={Tekalign Gutu Sakketa, Nicolas Gerber},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={Agricultural labour supply, female youth, male youth, marginal product of labour, shadow income},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{Are Rural Youth Disengaging from Agriculture? Empirical Evidence from Ethiopia\footnote{\textbf{Contact Address:} Tekalign Gutu Sakketa, University of Bonn, Center for Development Research (ZEF), Economic and Technological Change , Walter Flex Str. 3, 53113~Bonn, Germany, \mbox{e-mail}: \email{tekalign2003@gmail.com}}\\[0.8ex]}}
\normalsize{\textsc{Tekalign Gutu Sakketa, Nicolas Gerber}}
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\begin{itemize*}
\item[]{\small{\textit{University of Bonn, Center for Development Research (ZEF), Germany}}}
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\index[author]{Sakketa, Tekalign Gutu}
\index[author]{Gerber, Nicolas}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
This study investigates the trends, patterns and prospects of youth involvement in agriculture in Ethiopia, by gender. It also analyses the determinants of youth labour supply in agriculture using household and youth sample survey data collected during 2010/11 and 2014/15 main agricultural seasons in Oromia, one of the designated high agricultural potential area of Ethiopia. Labour supply is measured as the total annual working days (in adult equivalent) of male and female youth members of the household allocated to on"=farm and off"=farm work. Based on this data the marginal products (shadow wages) of youth workers of each gender and net income (shadow income) are estimated, using a structural time"=allocation models. Then the estimated shadow wages and shadow income are used as regressors in a structural model of youth labour supply. The results indicate that trends and patterns of youth involvement in agriculture vary across gender and work locations, and so do their marginal products. Whilst the on"=farm participation of youth is declining across time irrespective of gender, the participation in off"=farm agricultural activities is increasing for both. There is statistically no significant decrease in the total agricultural labour supply of both male and female youths. Further, we find that the effect of own shadow wage on labour supply is positive for male youth members, suggesting an upward sloping labour supply. However, the effect of own marginal product of female youth labour is negative, suggesting that female youth agricultural labour supply is backward bending. The findings challenge the presumption that youth are abandoning agriculture, at least in the survey areas. Policy implications of the results would be that changes in economic incentives such as marginal productivity of labour (shadow wages) and shadow income matter for youth involvement in agriculture and off"=farm agricultural employment opportunities could help to reduce youth underemployment.}

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\noindent \textbf{Keywords:} Agricultural labour supply, female youth, male youth, marginal product of labour, shadow income
\index[key]{Agricultural!labour supply}
\index[key]{Marginal product of labour}
\index[key]{Shadow income}
\end{document}
