The Signal of Applying for a Job Under a Vacancy Referral Scheme

We investigate the signalling effect related to participation in active labor‐market programs. To this end, we conduct an experiment in which human resources professionals make hiring decisions concerning fictitious job candidates who apply either under a job‐vacancy referral system or directly. We provide first causal evidence for a substantial adverse effect of referral on the probability of being hired. In addition, we find that employers perceive referred candidates as being less motivated than other candidates.     

Poverty targeting, resource degradation and heterogeneous endowments—a micro-simulation analysis of a less-favored Ethiopian village

Persistent and widespread poverty in less-favored areas (LFAs) is attributed to fragile natural resources and poor markets. Limited assets may keep households outside the reach of poverty policies targeted at LFAs. We explored in a stylized manner the role of heterogeneous household assets for (1) policies aimed at poverty reduction; (2) within-village income inequality; and (3) soil erosion. With a farm-household micro-simulation model we analyzed for each household in a remote Ethiopian village three sets of policies: technology improvement, infrastructure investment, and off-farm employment through migration or cash for work (CFW) programs. Combating poverty with a single policy, migratory off-farm employment reduces the poverty headcount most. Because of self-selection, CFW programs performed best in terms of reaching the poorest of the poor. CFW also reduced within-village income inequality most, while a price band reduction increased income inequality. Only technology improvements resulted in a trade-off between poverty and soil erosion. Price band and off-farm employment policies reduced erosion while outperforming technology improvements in terms of poverty reduction. We found that combining two policies was most helpful in assisting poorer households to overcome the limitations of their asset endowments. A CFW program combined with reduced price bands yielded most in terms of poverty reduction and income inequality. This policy complementarity is, however, less important for better-endowed households. Reducing the reliance of households on agriculture offered a win-win situation of reducing poverty and maintaining natural resources. Combining policies helped to overcome asset limitations, to target policies to the poorest households and to reduce income inequalities.     

Narrow and scientific replication of ‘The slave trade and the origins of mistrust in Africa'

Nunn and Wantchekon (2011) argue that slave trades led to a culture of mistrust in Africa. They regress self‐reported trust from the 2005 Afrobarometer surveys on ethnicity‐specific historic slave exports. Individuals from ethnic groups that experienced high levels of slave exports are less trusting. Causality is demonstrated by instrumenting slave exports using the historic distance of each ethnic group to the coast. Our narrow replication yields identical results. The scientific replication repeats the analysis with Afrobarometer survey data from 2008, which includes two new countries and more ethnic groups. Our replication confirms the results of Nunn and Wantchekon. Copyright © 2012 John Wiley & Sons, Ltd.     

Big is efficient: Evidence from agricultural cooperatives in Ethiopia

In Ethiopia, there is a renewed interest in agricultural cooperatives as an institutional tool to improve the welfare of smallholder farmers. One of the pathways through which cooperatives benefit their members is scale economies. However, the establishment of cooperatives in Ethiopia seems to pay little attention to the size of the organizations. This article aims at investigating the effect of size on cost efficiency of agricultural cooperatives. More specifically, the purpose is to examine whether a single cooperative can serve a given number of farmers at a lower cost than two or more smaller cooperatives could. We employ the concept of cost subadditivity to compare the cost efficiency of large versus small cooperatives, and by extension unilateral actions. We estimate a flexible production technology using cross‐sectional cooperative‐level data. Findings show that costs would drop by 78% to 181% if farmers join hands in relatively large rather than small cooperatives.     

Milk in the city: profiles and development paths for urban dairy holders in Ethiopia

ABSTRACT

Demand for dairy products is growing fast in urban areas. Due to poorly developed rural infrastructure, urban dairy farms are pivotal in making milk available and affordable in towns and cities. Yet current supply fails to meet the increasing demand. In order to formulate fit interventions that can expand urban dairy production, a detailed understanding of urban dairy systems is needed. Using a cluster analysis approach, we profile 304 urban dairy farms in Mekelle, Northern Ethiopia, along three dimensions: input efficiency, market integration, and resilience towards demand seasonality. Our results suggest five distinctive farm types: surviving farms, processing female farms, young male entrepreneurs, established output-efficient farms, and established output-input-efficient farms. We observe large discrepancies in terms of dairy enterprise’s productivity, profitability, and suitability in future urban policy planning. For each of the identified dairy systems, we sketch potential intervention approaches that can feed into more tailored dairy development programmes.     

Self-initiated nature conservation by farmers: an analysis of Dutch farming

In Europe, the active contribution of farmers to nature conservation is mainly voluntary. Whereas participation in agri-environmental schemes (AES) has been studied in detail, less is known about self-initiated nature conservation. Given the alarming decline in species diversity and abundance in agricultural landscapes, it is important to explore this form of conservation in more detail. In this paper we report on the results of a survey of Dutch dairy and arable farmers. We conclude that a large majority of farmers conduct self-initiated conservation activities on their farmyards and fields with varying ecological impacts and impacts on farming system. Helping birds was the most often mentioned activity. Farm size, on-farm side activities (in dairy farming), organic farming, the quality of the surrounding area and the absence of external constraints have a positive effect on the number of activities. Intensity has a negative effect on both the number of activities and on the probability that farmers conduct activities with substantial ecological impacts. There is no unambiguous evidence of a ‘crowding-out effect’ due to participation in AES. More research in this area can help contributing to a maximal exploitation of the conservation potential by farmers and to creating synergies with agri-environmental policies.     

Improving food security in the rural areas of KwaZulu-Natal province,South Africa: Too little,too slow

Food insecurity is still remarkably high in the poorest areas of the KwaZulu-Natal province of South Africa. Many rural households struggle to have sufficient access to the food they need or prefer. This article explores the extent of food access insecurity and assesses the perceived impact on food security of an Empowerment for Food Security Programme that was launched in the Province in 2007. One of the programme aims was to improve agricultural practices in community gardens, home gardens and broiler production. Data were collected among 390 beneficiary households involved in these agricultural projects in 2010. Findings confirmed that experience-based food insecurity levels were still high, despite the agricultural support programme and the government income transfers. Nevertheless, respondents attribute an improved dietary diversity and better access to resources to the programme.     

The dark side of discounts: An inaction inertia perspective on the post‐promotion dip

After a product has been on promotion, the sales of that product may temporarily decrease. This post‐promotion dip is normally explained in terms of forward buying or stockpiling. This article offers a third explanation in terms of brand switching. The results of two experiments show that after missing a discount on their regular brand, consumers may switch to another brand. Switching behavior is much more pronounced when a large discount is missed in comparison to when a small discount is missed. This finding is consistent with recent social psychological research on inaction inertia, and the results are discussed in relation to this phenomenon. © 2005 Wiley Periodicals, Inc.     

The socio-economic impact of certification schemes in conflict-affected regions: The case of arabica coffee in the Eastern DRC

The paper investigates the benefits of certification of cooperatives in conflict-affected areas. We study whether and how certification may contribute to attenuate the impact of conflicts on the members of coffee cooperatives in the Eastern DRC. We use an inverse probability weighted difference-in-difference approach to study data collected between December 2017 and October 2019 from four NGO-supported cooperatives. Two of these cooperatives got organic certification in 2018, of which one got an additional Small Producers Symbol (SPP) certification in 2018. Certified cooperatives allow Arabica coffee producers to access markets and buffer against drops in market prices. Results indicate that certified cooperatives were better able to resist the international price drop than non-certified cooperatives and the alternative informal markets. The results also suggest that certified cooperative members increased their sales to the cooperative instead of turning to informal side-selling. We find a decrease in reported food deficits by the members of certified cooperatives and an increase in the importance of coffee in their household's income. We conclude that certification is an effective way forward for smallholder coffee producers and cooperatives in unstable regions.