Determinants of household supply of labour in food-for-work programme in Tigray, Ethiopia

We study the factors that determine the household supply of labour in food-for-work (FFW) projects that seek to address food insecurity and help capital formation in development. Based on data from a survey conducted in 2003 in Tigray, Ethiopia, our probit analysis identifies factors that significantly affect the household decision to participate in FFW programmes. We correct for selection bias, and estimate total and excess supply of FFW labour. Our finding of substantial leakages in targeting that allow relatively well-off households to obtain FFW employment yield important implications for the prevailing FFW wage. We also argue that FFW programmes will be more effective if they are designed to account for geographic heterogeneity in such factors as male to female labour participation differences and the incidence of debilitating diseases.