Income diversification before and after economic shocks: evidence from urban and rural Zimbabwe

The article examines changes in income and activity diversification in Zimbabwe before and after macroeconomic policy changes and the droughts of the early 1990s. Data from two comparable national surveys straddling a period of economic volatility show that the percentage of households earning income from private and informal sources grew considerably, while income from government and formal sources declined. In general, rural households tend to have a more diversified portfolio of income than urban households, and the degree of income diversification decreases with the level of urbanisation. Following the shocks, there was a marked reduction in income diversification, notably among the poor. The findings thus strengthen the need for public provision of well-designed safety nets.     

Productivity and Land Enhancing Technologies in Northern Ethiopia: Health, Public Investments, and Sequential Adoption

The adoption of more efficient farming practices and technologies that enhance agricultural productivity and improve environmental sustainability is instrumental for achieving economic growth, food security, and poverty alleviation in sub-Saharan Africa. Our research examines the interaction between public investments, community health, and adoption of productivity and land enhancing technologies by households in the northern Ethiopian state of Tigray. Agricultural technology adoption decisions are modeled as a sequential process where the timing of choices can matter. We find that time spent sick and opportunity costs of caring for sick family members are significant factors in adoption. Sickness, through its impact on household income and labor allocation decisions for healthcare and other activities, significantly reduces the likelihood of technology adoption. Our findings suggest that agencies working to improve agricultural productivity and land resource conservation should consider not only the financial status of potential adopters, but also their related health situation.     

Changes in poverty in Zimbabwe between 1990 and 1996: Worsening outcomes under adverse conditions

The article examines changes in poverty and sources of change in Zimbabwe between 1990 and 1996. Comparable national survey data are used for both periods. Findings indicate that levels of wellbeing and poverty worsened during the period, although there is some evidence that inequality is lower in the latter year. Rural poverty is more prevalent, severe and deeper than that in urban areas, but urban poverty grew dramatically during the period. Much of the growth of urban poverty is associated with economic restructuring and the failure of the urban economy to produce high-quality jobs. While the educational attainment of the urban population grew during the 1990s, secondary and higher levels of education were no longer a guarantee of escape from poverty in 1995/6. In rural areas, all land-use types exhibited an increase in poverty; these findings are robust to the welfare measure chosen.