**Table** **<u>8</u>** <u>:  Estimation of non-farm income share (NF) and household welfare, rural areas</u>

|**Dependent Variables:**||**1990/91**|||**1995/96**||
|---|---|---|---|---|---|---|
|Non-farm income share (NF) and log of<br>per capita consumption(Cons)|1<sup>st</sup>stage<br>(1) NF|IV<br>(2) Cons|OLS<br>(3) Cons|1<sup>st</sup>stage<br>(4) NF|IV<br>(5) Cons|OLS<br>(6) Cons|
|NF||0.96|0.21||0.91|0.37|
|||(22.5)***|(10.8)***||(29.7)***|(23.8)***|
|Head sex (Male)|0.02|0.09|0.11|0.11|0.05|0.11|
||(2.6)***|(5.4)***|(6.9)***|(12.2)***|(3.4)***|(7.8)***|
|Head age|-0.05<br>|0.09<br>|0.06<br>|-0.02<br>|0.08<br>|0.07<br>|
||(3.8)***|(3.2)***|(2.1)**|(1.7)*|(3.5)***|(3.1)***|
|Age Squared|<br>0.00<br>*|<br>-0.01<br>***|<br>-0.01<br>***|<br>0.00<br>|<br>-0.01<br>***|<br>-0.01<br>***|
||(1.7)|(3.1)|(2.8)|(0.0)|(3.3)|(3.5)|
|Head education primary|<br>-0.03|<br>0.11|<br>0.09|<br>0.01|<br>0.03|<br>0.04|
||(3.3)***|(5.7)***|(4.9)***|(0.9)|(1.8)*|(2.3)**|
|Head education secondary or higher|0.13|0.34|0.45|0.12|0.13|0.20|
||(8.7)***|(10.8)***|(15.7)***|(7.7)***|(5.1)***|(8.2)***|
|Household size|-0.03|-0.12|-0.14|-0.06|-0.14|-0.17|
||(10.4)***|(19.4)***|(25.5)***|(17.7)***|(23.2)***|(31.4)***|
|# Boys|0.00|0.03|0.03|0.02|0.05|0.06|
||(0.1)|(3.3)***|(3.5)***|(3.5)***|(5.0)***|(6.5)***|
|# Girls|0.00|0.02|0.02|0.02|0.06|0.07|
||(0.2)|(2.4)**|(2.4)**|(4.1)***|(6.8)***|(8.6)***|
|# Male adult with primary education|<br>0.02|<br>0.05|<br>0.06|<br>0.05|<br>0.03|<br>0.05|
||(2.6)***|(3.4)***|(4.8)***|(6.3)***|(2.2)**|(4.4)***|
|# Male adult with sec./ higher education|<br>-0.01|<br>0.13|<br>0.13|<br>0.03|<br>0.11|<br>0.12|
||(0.9)|(10.8)***|(11.2)***|(4.3)***|(9.3)***|(11.3)***|
|# Female adult with primary education|0.00|0.07|0.07|0.01|0.05|0.05|
||(06)|(51)***|(59)***|(19)*|(39)***|(48)***|
|# Female adult with sec./ higher education|.<br>0.03|.<br>0.18|.<br>0.20|.<br>0.05|.<br>0.13|.<br>0.16|
|Per capita asset holding|(3.7)***<br>-0.09<br>|(12.9)***<br>0.40<br>|(15.5)***<br>0.33<br>|(6.9)***<br>-0.09<br>|(9.8)***<br>0.29<br>|(12.8)***<br>0.24<br>|
|Access to credit (yes)|(15.0)***<br>0.46<br>***|(32.3)***<br>0.11<br>***|(30.3)***<br>0.45<br>***|(15.5)***<br>0.28<br>***|(29.9)***<br>0.18<br>***|(27.3)***<br>0.33<br>***|
|Manicaland (yes)|(26.6)<br>6.68|(2.7)<br>0.44|(13.5)<br>0.38|(12.2)<br>-1.51|(5.0)<br>0.12|(9.9)<br>0.12|
||(14.3)***|(22.0)***|(20.8)***|(2.6)**|(6.4)***|(6.9)***|
|Masonaland East (yes)|7.32|0.05|0.06|-0.58|0.13|0.19|
||(14.4)***|(2.0)**|(2.8)***|(2.0)**|(6.6)***|(10.3)***|
|Masonaland West (yes)|<br>-5.48<br>|<br>0.21<br>|<br>0.28<br>|<br>-0.04<br>|<br>-0.03<br>|<br>-0.04<br>|
||(14.2)***|(8.6)***|(12.5)***|(0.8)|(1.2)|(1.9)*|
|Matabeleland North (yes)|-15.75|0.01|-0.02|-0.31|0.05|0.05|
||(14.4)***|(0.5)|(0.7)|(2.1)**|(2.5)**|(2.6)***|
|Midlands (yes)|-12.94|0.24|0.19|0.14|-0.02|-0.05|
||(144)***|(109)***|(97)***|(29)***|(12)|(29)***|
|Rainfall standard Deviations (planting)|.<br>9890|.|.|.<br>181|.|.|
||.<br>(143)***|||.<br>(36)***|||
|Rainfall standard deviations (harvesting)|.<br>10.22|||.<br>2.18|||
||<br>(14.2)***|||<br>(2.8)***|||
|Constant|<br>-26.84|3.03|3.66|<br>-0.33|3.14|3.52|
||(13.9)***|(38.8)***|(55.2)***|(1.1)|(49.0)***|(60.7)***|
|R Squared (adjusted)|0.26|--|0.47|0.21|--|0.46|
|<br>Observations (N)|9342|9342|9342|9910|9910|9910|

Absolute value of t statistics in parentheses. * significant at 10%; **significant at 5%; *** significant at 1% 22