Migration And Household Income Diversification The Case Of Hetosa District In Oromia Region

This paper uses limited-dependent variable methods and new data from Hetosa district to test the effect of intercontinental on activity choice and incomes in rural households. Econometric evidence supports our theoretical expectation that the impact of emigration varies both by migrant destination and production activity. We find no evidence of either positive or negative effects of continental migration on any activity because of all migrants are intercontinental migrants. However, intercontinental migration, which tends to be long term and generates significantly larger remittances, stimulates livestock production and cash crop while being negatively associated with non-farm activities income and positive associated with crop production but not significant .policy recommendation is very important to continuous the effect of migrant on income diversification i.e on livestock and cash crop production promotion of production working on infrastructure and search of ground water for irrigation is most policy recommended to district.

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