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Heterogeneous Returns to Income Diversification: Evidence from Nigeria

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dc.contributor.authorBertoni, Eleonora
dc.contributor.authorCorral, Paul
dc.contributor.authorMolini, Vasco
dc.contributor.authorOseni, Gbemisola
dc.date.accessioned2016-12-06T22:15:38Z
dc.date.available2016-12-06T22:15:38Z
dc.date.issued2016-11
dc.description.abstractThis paper investigates the impact of income diversification on farming households' welfare in Nigeria on two rounds of the Nigeria General Household Survey-Panel, namely the 2010/2011 and 2012/2013. The study finds that income diversification is the norm in Nigeria, with about 60 percent of farmers diversifying away from subsistence farming into non-farm activities and cash crops. In addition, using the panel of farmers interviewed before and after a severe drought that hit Northern Nigeria in particular in 2011, the study finds that diversification increased throughout Nigeria from 60 to 64 percent and in the North from 58 to 63 percent. The study postulates the existence of heterogeneous returns on diversification as a consequence of the drought, and estimates the returns through a non-parametric selection model using a local instrumental variable. The choice of this model is dictated by the necessity to account for both heterogeneous effects of diversification and selection bias related to households' decision to diversify. Overall, it is found that diversification positively affects consumption in Nigeria. However, who benefits the most is crucially determined by the initial conditions under which diversification is undertaken and the specific agro-climatic context in which households operate.en
dc.identifierhttp://documents.worldbank.org/curated/en/385071479755915911/Heterogeneous-returns-to-income-diversification-evidence-from-Nigeria
dc.identifier.doi10.1596/1813-9450-7894
dc.identifier.urihttps://hdl.handle.net/10986/25696
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7894
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectincome diversification
dc.subjectoff-farm employment
dc.subjectheterogeneous returns
dc.subjecthousehold surveys
dc.subjectnon-farm activities
dc.subjectclimate change
dc.subjectclimate change impacts
dc.titleHeterogeneous Returns to Income Diversificationen
dc.title.subtitleEvidence from Nigeriaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleHeterogeneous Returns to Income Diversification: Evidence from Nigeria
okr.date.disclosure2016-11-21
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/385071479755915911/Heterogeneous-returns-to-income-diversification-evidence-from-Nigeria
okr.guid385071479755915911
okr.identifier.doi10.1596/1813-9450-7894
okr.identifier.externaldocumentum090224b08471fcfb_1_0
okr.identifier.internaldocumentum26959045
okr.identifier.reportWPS7894
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/385071479755915911/pdf/WPS7894.pdfen
okr.region.administrativeAfrica
okr.region.countryNigeria
okr.statistics.combined1528
okr.statistics.dr385071479755915911
okr.statistics.drstats1124
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicRural Development::Agricultural Growth and Rural Development
okr.topicRural Development::Rural Poverty Reduction Strategies
okr.topicAgriculture::Commodity Risk Management
okr.unitPoverty and Equity Global Practice Group
relation.isAuthorOfPublication562ed170-5271-5853-9c3c-a3ad9e16e176
relation.isAuthorOfPublicationf86a19b9-9c7d-5180-8883-bd804150a4c2
relation.isAuthorOfPublication.latestForDiscoveryf86a19b9-9c7d-5180-8883-bd804150a4c2
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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