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1 – 10 of over 80000Siti Badariah Saiful Nathan and M. Mohd Rosli
The purpose of this paper is to identify the structure of household income and examine the effects of non-farm incomes on the income distribution of farm households in a…
Abstract
Purpose
The purpose of this paper is to identify the structure of household income and examine the effects of non-farm incomes on the income distribution of farm households in a relatively developed rural area of the Malaysian rice bowl.
Design/methodology/approach
The non-farm incomes were disaggregated into different components to determine the contribution of each income source to total household income and overall inequality. The income distribution and decomposition was examined using the Gini decomposition method.
Findings
It was found that almost 71 percent of the households in the sample had at least one source of non-farm income. On average, non-farm incomes contributed about 33 percent to total household income. Non-farm wage employment was the dominant source of non-farm income, accounting for almost 26 percent of overall household income. The farm incomes, especially the paddy incomes were found to be the inequality-decreasing income source. The study also confirmed the proposition that the non-farm incomes were the inequality-increasing income source as they contributed up to 35 percent of the overall income inequality.
Originality/value
Previous studies have found that non-farm incomes have different effects on income inequality of rural communities, especially those in the rice granary areas situated in less developed states of Malaysia, where poverty is still a problem. This study is significant because it identifies the effect of certain incomes on the overall income inequality among farm households in the granary areas located in a relatively developed rural area. The studied areas are characterized by an intensive paddy production and a rapid development in business and industrial activities, and hence, providing non-farm employment opportunities to the rural farmers. Therefore, this study shows the income structure and how farm and non-farm incomes affect the overall income distribution of the paddy farmers.
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Peter Quartey, Mark Edem Kunawotor and Michael Danquah
The purpose of this paper is to examine alternative sources of retirement income apart from the Social Security and National Insurance Trust (SSNIT) pension benefits and the…
Abstract
Purpose
The purpose of this paper is to examine alternative sources of retirement income apart from the Social Security and National Insurance Trust (SSNIT) pension benefits and the significance of these retirement income sources in the consumption decisions of pensioners in Ghana.
Design/methodology/approach
Using household survey data on SSNIT pensioners in Accra, Ghana, this study employ the Garrett and Kendall coefficient of concordance (W-test) to robustly identify the sources of retirement income and determine the significance of these income sources in financing consumption expenditure during retirement.
Findings
The findings show that apart from SSNIT pension benefits, other sources of retirement income including rental income, income from post-retirement jobs and remittances from family and friends are significant sources of income for pensioners in Ghana. Personnel savings and investment was the least important source of retirement income.
Research limitations/implications
Further research will be needed to validate these results, particularly using household survey data that covers the entire country.
Originality/value
The study contributes to the scanty literature on retirement income by robustly identifying the alternative sources of retirement income and their importance or significance to pensioners in Ghana.
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Melissa G. Keith, Peter Harms and Louis Tay
The purpose of this paper is to provide an investigation of how different types of gig workers engage in the gig economy. Specifically, the authors distinguish between workers who…
Abstract
Purpose
The purpose of this paper is to provide an investigation of how different types of gig workers engage in the gig economy. Specifically, the authors distinguish between workers who view gig work as primary income (or not) and those workers who view it as a job (or not).
Design/methodology/approach
In total, 1,190 Mechanical Turk (MTurk) workers completed surveys across two studies examining whether types of workers differ based on demographic characteristics, utilization of MTurk, why they participate in the gig economy on MTurk (i.e. push and pull factors) and how this impacts life satisfaction.
Findings
Workers relying on MTurk as a primary income had lower incomes and spent more time completing large numbers of work units. This group of workers also reported fewer pull factors (e.g. enjoyment) as a reason for working in the gig economy and had lower levels of self-reported current and predicted future life satisfaction. Individuals who view MTurk as a job were more likely to treat MTurk like a job – engaging in online communities and having a regular work schedule. These workers were more likely to report pull factors (e.g. enjoyment and challenge) and did not differ on life satisfaction.
Originality/value
The current research contributes to our understanding of MTurk, one of the largest online platforms for gig work, as part of the diverse gig economy and highlights potential areas for future research.
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Aisha Olushola Arowolo, Mure Agbonlahor, Peter Okuneye and Jubril Soaga
Emerging evidence revealed a high rate of dependence of marginal people on forest resources in developing countries for both subsistence use and cash income. The purpose of this…
Abstract
Purpose
Emerging evidence revealed a high rate of dependence of marginal people on forest resources in developing countries for both subsistence use and cash income. The purpose of this paper is to examine the rural livelihoods welfare dimensions of community forest income in south-western Nigeria.
Design/methodology/approach
Forest activities and income pattern data were collected from 160 rural households’ selected using multistage sampling approach. Descriptive statistics and Gini decomposition technique were used to analyse the data.
Findings
The result shows that forest income accounts for about 38.2 per cent of total household income and was the first ranked source of income in the study area. The Gini decomposition analysis showed that access to forest income is income inequality reducing in the study area. The study findings suggests that household welfare in rural Nigeria could be improved through policies and programmes that can stimulate sustainable access to forest resources and assist households to earn income from alternative sources such as agriculture.
Originality/value
The result of the study helped provide information on the uses and benefits of community forests as it affects the well-being of rural people. Also, it provides the benchmark for policy makers, government agencies and NGO's involved in rural livelihood outcome of forest communities.
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Haitao Wu, Shijun Ding and Guanghua Wan
The purpose of this paper is to apply a poverty level decomposition approach to decompose the poverty by income sources and investigate the impact of government transfers on income…
Abstract
Purpose
The purpose of this paper is to apply a poverty level decomposition approach to decompose the poverty by income sources and investigate the impact of government transfers on income inequality and rural poverty.
Design/methodology/approach
This paper uses the decomposition method of inequality and the decomposition method of poverty level by resource endowments to decompose the overall inequality and the overall poverty by income sources.
Findings
It is found that unequal income distribution rather than income endowments is mainly responsible for the existence of poverty. Government transfers and relief income, aiming at the poor, help alleviate inequality and poverty, but are not targeting the poorest. Unequal distribution of production subsidies actually lead to higher poverty incidence.
Research limitations/implications
This paper has revealed that the poverty issue cannot be resolved with economic development alone if the issues including the inequality in income distribution are not solved. It is important to make government transfers/subsidies pro-poor.
Originality/value
A poverty level decomposition approach is first used to decompose the poverty by income sources in China.
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The purpose of this paper is to decompose income inequality across various household income components and to estimate the marginal effects of changes in each of the income…
Abstract
Purpose
The purpose of this paper is to decompose income inequality across various household income components and to estimate the marginal effects of changes in each of the income components on overall income inequality in Ghana.
Design/methodology/approach
Data were collected from the fifth and sixth rounds of the Ghana Living Standards Surveys. Gini coefficient was estimated and decomposed across structured income components. The marginal effects were obtained by computing the partial derivatives of the Gini coefficient with respect to a percentage change in a particular income source.
Findings
The results suggest that, in general, income inequality has increased marginally over the years (Gini coefficient of 0.66 in 2013 and 0.62 in 2006). Inequality was, however, higher in urban areas than in rural areas in 2013 with the reverse observed in 2006. The income component decomposition analysis suggests that wage employment income dominated household income in both rural and urban areas, even though the magnitude was higher in urban areas. Farm income was only dominant in rural communities in 2006. Self-employment and remittance income had consistent inequality reducing effects on total household income distribution.
Originality/value
The study goes beyond inequality studies in Ghana to estimate the marginal effect of income components on inequality. Such decomposition will allow for effective policy targeting in a resource-constrained developing country like Ghana.
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Iqbal Irfany, Peter John McMahon, Jenny-Ann Toribio, Kim-Yen Phan-Thien, Muhamad Amin Rifai, Sigit Yusdiyanto, Grant Vinning, David I. Guest, Merrilyn Walton and Nunung Nuryartono
The aim of this study was to evaluate determinants of four diversification practises by cocoa smallholders in West Sulawesi, Indonesia: (1) growing other crops, (2) keeping…
Abstract
Purpose
The aim of this study was to evaluate determinants of four diversification practises by cocoa smallholders in West Sulawesi, Indonesia: (1) growing other crops, (2) keeping livestock, (3) off-farm work for wages (4) off-farm self-employment, and the impact of diversification on welfare of community members.
Design/methodology/approach
Household interviews (n = 116) conducted in two subdistricts (Anreapi and Mapilli) of Polewali-Mandar District, West Sulawesi, provided quantitative data on household characteristics, crop and livestock production, income sources, expenditure and credit access. Two villages per subdistrict were included in the study, each producing cocoa as the main crop but differing in their proximity to a market town. Logistic regression was applied to identify determinants of diversification by households. Multiple linear regression (MLR) models evaluated the impact of diversification practices and other explanatory variables on two proxies of welfare (or household wealth): per capita value of durable assets (household assets other than land or livestock) and per capita expenditure for each household.
Findings
Mean per capita cocoa production in the sample was low (51 kg dry beans/annum). The mean dependency ratio (proportion of household occupants age <18 and >64) was 35%, with an average of five occupants per household. Household heads were predominantly male (95%), averaging 46 yo and 7 years of formal education. Most households (72%) depended on loans, but only 24% accessed formal loans. Significant determinants of diversification practices were access to formal credit for self-employment and subdistrict for livestock, with Mapilli subdistrict households more likely to keep livestock. Household predictors in the MLR accounted for 28% variation of the dependent, per capita value of durable goods. Off-farm self-employment and raising livestock significantly improved welfare, but growing other crops or off-farm work for wages had little effect. Other household variables demonstrated to have significant positive effects on welfare were education of the household head, proximity to a market town and land area per household.
Research limitations/implications
The study was restricted to a relatively small sample size (n = 116). Studies including panel data or larger numbers of households could enable the identification of further determinants of diversification.
Practical implications
The study demonstrates that diversification has the potential to improve rural livelihoods, but that obstacles, especially formal credit access, may deter poorer households from diversifying their income sources.
Social implications
Programs and policies that facilitate access to formal finance by smallholders could encourage diversification into small business and improve livelihoods in cocoa-dependent communities.
Originality/value
In the light of the decline in cocoa farm productivity in West Sulawesi, the study demonstrates the potential benefits, as well as limitations, of income diversification by smallholders.
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Open economy macroeconomic models generally overlook the effects ofinternational migration and remittances on income and welfare. Atwo‐country temporary equilibrium model is…
Abstract
Open economy macroeconomic models generally overlook the effects of international migration and remittances on income and welfare. A two‐country temporary equilibrium model is presented which incorporates trade theoretic elements of international migration and remittances. In the model, an expansionary incomes, or a trade, policy by the host country induces migration, while expansionary demand policies in the source country discourage migration. In all cases, however, when some degree of international migration exists, potential income and welfare gains to both countries induced by such policies exceed the equivalent policy gains where international migration and remittances are absent.
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We analyze the food security implications of off-farm labor reallocation decisions of rural farm households in transitional Albania. We accomplish this by examining local and…
Abstract
Purpose
We analyze the food security implications of off-farm labor reallocation decisions of rural farm households in transitional Albania. We accomplish this by examining local and nonlocal off-farm incomes for at-home food consumption expenditures.
Methodology/approach
An instrumental variable approach is employed to correct for endogeneity and censorship biases of off-farm income variables in a two-stage estimation of the food consumption expenditures.
Findings
We find that local off-farm income exerts a positive and significant effect on per capita food consumption expenditures of farm households, while private remittances from nonlocal off-farm income has the opposite effect on food consumption expenditures. In terms of regional heterogeneity, we discover that the mountain region spends significantly less on annual per capita food consumption compared to the central region. This confirms anecdotal evidence that food and nutrition insecurity in rural Albania is predominant in the mountain region.
Social implications
Our findings suggest the need for policy makers to promote a development agenda that enables farm households to exploit the synergies among the various income-generating activities in the rural economy. This spectrum of income-generating activities forms complex livelihood strategies adopted by rural farm households to improve and maintain their food security.
Originality/value
We distinguish between local and nonlocal sources of off-farm income. Knowing which off-farm income source(s) has the largest impact on household welfare through improved food security status should be of interest to policy makers.
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