Income Diversification in Zimbabwe : Welfare Implications from Urban and Rural Areas

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dc.creatorErsado, Lire
dc.date2012-06-18T22:38:54Z
dc.date2012-06-18T22:38:54Z
dc.date2006-07
dc.date.accessioned2026-07-01T01:24:28Z
dc.descriptionThe author examines, taking into account the urban-rural divides, the changes and welfare implications of income diversification in Zimbabwe following macroeconomic policy changes and droughts of the early 1990s. Data from two comparable national income, consumption and expenditure surveys in 1990-91 and 1995-96, which straddled a period of economic volatility and natural disasters, show that the percentage of households earning income from private and informal sources grew considerably, while that from government and formal sources declined in the aftermath of the drought and policy changes. The author finds that, in general, rural households tend to have a more diversified portfolio of income compared with their urban counterparts, and the degree of diversification decreases with the level of urbanization. However, there are important differences in the level of diversification within the rural and urban areas depending on wealth: While the relatively better-off households have a more diversified income base in rural areas, it is the poor who pursue multiple income sources in urban areas. A decomposition of changes in welfare indicates that the total contribution of income diversification is large and increased between 1990-91 and 1995-96 in both urban and rural areas. On the other hand, there were significant declines in returns to human and physical capital assets during the same period. The findings suggest that households with a more diversified income base are better able to withstand the unfavorable impacts of the policy and weather shocks. The fact that relatively better-off households have a more diversified income base following the shocks implies that the poor are more vulnerable to economic changes unaccompanied by well-designed safety nets.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2006/07/6913992/income-diversification-zimbabwe-welfare-implications-urban-rural-areas
dc.identifierhttps://hdl.handle.net/10986/8389
dc.identifierhttps://doi.org/10.1596/1813-9450-3964
dc.identifier.urihttp://hdl.handle.net/123456789/417808
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper; No. 3964
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectADJUSTMENT POLICIES
dc.subjectADULT EQUIVALENT
dc.subjectADVERSE EFFECTS
dc.subjectAGRICULTURAL ACTIVITIES
dc.subjectAGRICULTURAL SECTOR
dc.subjectAGRICULTURAL YIELDS
dc.subjectAGRICULTURE
dc.subjectASSET HOLDINGS
dc.subjectCENSUS DATA
dc.subjectCHANGES IN POVERTY
dc.subjectCONSUMERS
dc.subjectCONSUMPTION EXPENDITURES
dc.subjectCONSUMPTION EXPENDITURES PER CAPITA
dc.subjectCONSUMPTION LEVELS
dc.subjectCOPING STRATEGY
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCROSS-SECTIONAL DATA
dc.subjectDEMOGRAPHIC CHARACTERISTICS
dc.subjectDEPENDENT VARIABLE
dc.subjectDEREGULATION
dc.subjectDESCRIPTIVE STATISTICS
dc.subjectDEVALUATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING WORLD
dc.subjectDEVELOPMENT AGENCIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIFFERENCES IN INCOME
dc.subjectDIVERSIFICATION
dc.subjectDROUGHT
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC DOWNTURNS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC REFORM
dc.subjectECONOMIC SHOCKS
dc.subjectEMPIRICAL ESTIMATION
dc.subjectEMPIRICAL MODEL
dc.subjectEMPIRICAL RESULTS
dc.subjectEMPIRICAL STUDIES
dc.subjectEMPIRICAL WORK
dc.subjectEMPLOYMENT INCOME
dc.subjectENDOGENOUS VARIABLE
dc.subjectEXCHANGE RATE
dc.subjectEXPLANATORY POWER
dc.subjectEXPLANATORY VARIABLE
dc.subjectEXPLANATORY VARIABLES
dc.subjectEXPORTS
dc.subjectFAMINE
dc.subjectFARM EMPLOYMENT
dc.subjectFARM HOUSEHOLDS
dc.subjectFARM INCOME
dc.subjectFARM INCOMES
dc.subjectFEMALE-HEADED HOUSEHOLDS
dc.subjectFOOD ITEMS
dc.subjectFOOD MARKETS
dc.subjectFOOD POLICY
dc.subjectFOOD POVERTY
dc.subjectFOOD POVERTY LINE
dc.subjectFOOD PRODUCTION
dc.subjectGDP PER CAPITA
dc.subjectGNP
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectHOUSEHOLD CHARACTERISTICS
dc.subjectHOUSEHOLD CONSUMPTION
dc.subjectHOUSEHOLD DATA
dc.subjectHOUSEHOLD HEAD
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD LEVEL
dc.subjectHOUSEHOLD LEVEL DATA
dc.subjectHOUSEHOLD MEMBERS
dc.subjectHOUSEHOLD SIZE
dc.subjectHOUSEHOLD SURVEY
dc.subjectHOUSEHOLD SURVEYS
dc.subjectHOUSEHOLD WELFARE
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME GENERATION
dc.subjectINCOME INEQUALITY
dc.subjectINCOME RISK
dc.subjectINCOME SHARE
dc.subjectINCOME SHARES
dc.subjectINCOME SOURCE
dc.subjectINCOME SOURCES
dc.subjectINCREASE INCOME INEQUALITY
dc.subjectINSURANCE
dc.subjectLABOR
dc.subjectLABOR MARKETS
dc.subjectLABOUR INCOME
dc.subjectLIQUIDITY
dc.subjectLIVELIHOOD STRATEGIES
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMARKET
dc.subjectMARKET FAILURES
dc.subjectNATIONAL INCOME
dc.subjectNATIONAL SURVEYS
dc.subjectNATURAL DISASTERS
dc.subjectNATURAL LOGARITHM
dc.subjectNEGATIVE EFFECT
dc.subjectNONFARM INCOME
dc.subjectPER CAPITA CONSUMPTION
dc.subjectPERMANENT INCOME
dc.subjectPERMANENT INCOME HYPOTHESIS
dc.subjectPOLICY CHANGES
dc.subjectPOLICY IMPLICATIONS
dc.subjectPOLICY REFORM
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOOR
dc.subjectPOOR HOUSEHOLDS
dc.subjectPOORER HOUSEHOLDS
dc.subjectPOSITIVE EFFECT
dc.subjectPOSITIVE IMPACT
dc.subjectPOVERTY REDUCTION
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC PROVISION
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SPENDING
dc.subjectREAL GDP
dc.subjectREFORM PROGRAM
dc.subjectREGIONAL DIFFERENCES
dc.subjectREGRESSION RESULTS
dc.subjectRELATIVE CONTRIBUTIONS
dc.subjectREMOTE AREAS
dc.subjectRISK MANAGEMENT
dc.subjectRURAL
dc.subjectRURAL AREAS
dc.subjectRURAL COUNTERPARTS
dc.subjectRURAL DEVELOPMENT
dc.subjectRURAL HOUSEHOLDS
dc.subjectRURAL INCOME
dc.subjectRURAL LABOR
dc.subjectRURAL LINKAGES
dc.subjectRURAL POOR
dc.subjectRURAL SECTORS
dc.subjectSAFETY NETS
dc.subjectSAVINGS
dc.subjectSECTOR EMPLOYMENT
dc.subjectSELF-EMPLOYMENT
dc.subjectSIGNIFICANT IMPACT
dc.subjectSOCIAL CAPITAL
dc.subjectSOCIAL DEVELOPMENT
dc.subjectSTRATEGIC COMPLEMENTARITIES
dc.subjectSTRUCTURAL ADJUSTMENT
dc.subjectTARGETING
dc.subjectTRADE POLICIES
dc.subjectUNDERESTIMATES
dc.subjectUNEMPLOYMENT
dc.subjectURBAN AREAS
dc.subjectURBAN HOUSEHOLDS
dc.subjectVEGETABLE PRODUCTION
dc.subjectVULNERABLE GROUPS
dc.subjectWAGE EMPLOYMENT
dc.subjectWEALTH
dc.subjectWELFARE IMPLICATIONS
dc.subjectWELFARE MEASURE
dc.titleIncome Diversification in Zimbabwe : Welfare Implications from Urban and Rural Areas

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