Factors influencing income level of (agro‐) pastoral communities

Purpose – Most of the studies done on pastoralists in Ethiopia either rely on qualitative data or mainly focus on descriptive analysis and thus lack rigorous econometric measures. As a result, very little is known about the economics of household level activities in pastoral production systems. Thus, the aim of this paper is to use analysis factors influencing household income among (agro‐) pastoralists of southern Ethiopia. This information therefore can contribute to more evidence‐based decision making occurring across pastoral areas and inform policy decisions regarding the design of income generating strategies in pastoral areas. Design/methodology/approach – Multi stage sampling technique was followed to select 197 household heads. Descriptive statistics like mean, standard deviation and percentages were used to explain the socioeconomic characteristics of respondents. The relationship between the household income and the independent variables were estimated using multiple regression procedure. Findings – The finding shows that wealth and income are highly skewed; agro‐pastoralists earned two‐fold more than pastoralists by virtue of their crop activity. The variables explaining the variations in income level are family size, market distance, land size, education level and livelihood diversification status. Households with larger family members, farm land, nearer to market centres, diversification status and literate heads have earned larger income than their counterparts. Practical implications – Improving market access and developing marketing opportunities are essential to (agro‐) pastoralists to get the best value for their products; alongside the expansion of crop cultivation and creation of alternative livelihood opportunities and access to education should be emphasized. Originality/value – The paper presents an analysis of original survey conducted by the author from December to January 2010/11.