Impact of income diversification on rural household food security in Ethiopia

Using primary data collected from 462 farm households, this paper aims to examine the impact of income diversification on rural household food security in Ethiopia. A propensity score matching model was employed to analyze the impact of participation in both agriculture and non-agriculture activities on household food security. The results indicate that age, education level, household size, number of contacts with extension agents, and numbers of livestock in tropical livestock units have a significant effect on household participation in both agriculture and non-agriculture sources of income generation. The propensity score matching result suggested that participation in both agriculture and non-agriculture would increase the rural household food security status by 10.6% to 19.5%, mainly due to a positive effect of additional sources of income generation from non-agriculture activities as witnessed in present and past studies. Therefore, to make considerable improvement on the food security situation, there is need to promote and scale-up on-farm, off-farm and non-farm income-generating activities in rural areas to diversify income sources so as to improve food security status of the rural households in Ethiopia.