Abstract:
The study was conducted at Chomen Guduru with objectives of identify determinants of farm household’s labor supply to off farm activities and its effect on household income. Both primary and secondary data were used in order to achieve the objectives of the study. A cross-sectional survey of 218 sampled farm household selected using random sampling method was carried-out. Descriptive statistics and econometrics model such as Logit and OLS model were employed to analyze the data. Descriptive result show, the livelihood characteristics of average farmhouse hold’s labor supply to off farm activities income was is 39604.3 and households do not labor supply to off farm activities is 33792.7 and also, the average education of households labor supply to off farm activities is 6 years with standard deviations of 3years, the average age of households labor supply to off farm activities is 43 years with standard deviations of 13 years. The Logit model result revealed that from the variable used in the model like household size, age of the household, marital status of the head, education, off-farm income, assets of the household, farm income, non-farm income, farm experience and household head saving habit were positively and significantly affect labor supply to off-farm activities while health status household were negative and significant correlation with the dependent variable. The OLS result indicates that participate in off-farm activities by farm households were positively and significantly affecting farm household income.The result implies that participation into off-farm activities increases overall income of a household positively hence strategy target to improve rural household .The result implies that participation in off-farm activities increases overall income of a household positively hence government and other responsible body should design strategy target to improve rural household participation on off-farm activities. . Furthermore effort should be made to enhance those variables significance in affecting farm household participation in off-farm activities in the study area
