nation-wide panel survey of about 2,300 households in 115 villages (kebeles) conducted by the Ethiopian Economic Association (EEA) joint with the World Bank in July-August 2006. The sample was stratified by agro-ecological zone and region to ensure coverage of all the country’s agricultural production systems. The first round, focused on extension services, was fielded in 2004 when, except for Tigray and some small pilots, no land certification had been undertaken anywhere in the country. At the time of the second survey, all except 9 kebeles had started implementation of land certification activities.

At the household level, standard elements of a multi-purpose household survey (roster, consumption, assets, credit, farm- and non-farm income) and information on land use and land-related investment were adapted to local conditions. Individual questions on involvement at different points of certification and a test of legal knowledge were added and administered separately to a male and female respondent -normally head and spouse- per household. A community questionnaire inquired about key steps of certification, composition of key local bodies involved (kebele administration, social court, LAC), and the legal knowledge of members of these bodies with questions identical to those used at the household level.

Table 1 illustrates key characteristics for the 115 kebeles in the sample by region (cols. 2-5) and by whether or not certificates had been issued 12 months before the survey date (cols. 6 and 7).<sup>5</sup> All kebeles are located in the Ethiopian highlands with mean elevation of 2,100 m and annual rainfall of some 1,200 mm, are given in table 1. An average kebele has 1,200 households (6,000 individuals) in slightly more than 5 sub-kebeles. 16% of households (27% in Tigray and 12% in the South) are female headed. With only 3.5 km to the next road (which in 44% of the cases is asphalt, and in only 15% dirt), and less than 10 km to the woreda capital and the next market, infrastructure access is quite good. About one third and 41% have a seed or fertilizer distribution center, respectively, and 87% and 61% (67% and 42% in the South and 100% for both in Amhara) have institutions providing short- and long-term credit. Mean daily wages for land preparation, which range from B 6.6 in the South to B 12.5 (with an exchange rate of B 8.5 per US$) in Amhara, illustrate differences in the level of economic activity and availability of alternative opportunities.

Agriculture is the predominant economic activity; in the average kebele, 90% of households depend on agriculture only, a share that ranges from 93% in Tigray to 84% in the South. With only about 10% and 5% of households having self-employed or salaried members, the extent of economic diversification is very limited, reinforcing the pre-eminent importance of land as a source of livelihood and a key asset. Mean levels of human and physical capital are also low; 56% of households have a head who is illiterate, a value that ranges from 45% in Amhara to almost two-thirds (65%) in the South. Overall, only 51% have a radio, 46% an iron roof, and 43% two or more oxen. Across regions, asset endowments are lowest in the South and highest in Amhara or Oromia. The importance of land is underscored by the generalized land scarcity,

> 5 As the existence of certificates 12 months ago will be used in regressions below, the purpose of disaggregating information along this line is to check for presence significant differences in observables between kebeles who had completed certification at this point and those who did not.

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