Factors affecting renting in and renting out of land in a semi-arid economy of Tigrai, northern Ethiopia: a generalized random effect order probit model

Figures & data

Table 1. Summary statistics of variables used in the econometric analysis by survey year

	Survey period
Variable’s description	2005/06		2009/10		2014/15		Total
Household is a tenant (yes = 1)	0.281	(0.025)	0.175	(0.021)	0.231	(0.024)	0.229	(0.0149
Households is landlord (yes = 1)	0.241	(0.024)	0.231	(0.024)	0.256	(0.024)	0.243	(0.014)
Household is self-operator (yes = 1)	0.522	(0.028)	0.597	(0.027)	0.544	(0.028)	0.554	(0.016)
Head’s gender (female = 1)	0.253	(0.024)	0.250	(0.024)	0.263	(0.025)	0.255	(0.014)
Head’s age < 35 years (yes = 1)	0.106	(0.017)	0.059	(0.013)	0.025	(0.009)	0.064	(0.008)
Head’s age 35–60 years (yes = 1)	0.572	(0.028)	0.584	(0.028)	0.444	(0.028)	0.533	(0.016)
Head’s age >60 years(yes = 1)	0.322	(0.026)	0.356	(0.027)	0.531	(0.028)	0.403	(0.016)
Head’s education (illiterate = 1)	0.800	(0.022)	0.691	(0.026)	0.688	(0.026)	0.726	(0.014)
Family size (number)	5.628	(0.135)	5.356	(0.132)	5.806	(0.137)	5.597	(0.078)
Male adult (number)	1.500	(0.064)	1.647	(0.072)	2.172	(0.079)	1.773	(0.043)
Female adult (number)	1.460	(0.047)	1.419	(0.054)	1.418	(0.066)	1.531	(0.033)
Dependent family (number)	2.900	(0.079)	2.763	(0.074)	2.303	(0.068)	2.675	(0.044)
Oxen own, dummy (yes = 1)	0.596	(0.027)	0.606	(0.027)	0.621	(0.027)	0.608	(0.016)
Oxen own (number)	0.938	(0.055)	0.994	(0.052)	1.006	(0.055)	0.979	(0.031)
Access to credit, dummy (yes = 1)	0.419	(0.028)	0.398	(0.027)	0.453	(0.028)	0.423	(0.016)
Livestock (TLU)	1.353	(0.088)	1.584	(0.091)	3.579	(0.191)	2.172	(0.083)
Distance to market (hour)	1.374	(0.023)	1.484	(0.050)	1.373	(0.054)	1.410	(0.026)
Distance to all weather road (hour)	2.930	(0.096)	2.925	(0.094)	2.635	(0.097)	2.830	(0.055)
Own land (ha)	0.958	(0.041)	0.950	(0.036)	0.932	(0.038)	0.947	(0.022)
Share cropping rental (yes = 1)	0.988	(0.006)	0.981	(0.008)	0.919	(0.015)	0.963	(0.006)
Mean rainfall 2 years lag (mm)	66.042	(1.897)	98.392	(2.822)	116.856	(2.293)	93.764	(1.525)
Rainfall variability 2 years lag (mm)	46.757	(0.757)	51.483	(1.215)	83.036	(1.214)	60.425	(0.813)
Distance to plot (hr)	0.453	(0.026)	0.452	(0.028)	0.511	(0.026)	0.472	(0.015)

Number in parentheses are standard errors. Source: NUMBU and MU household panel survey.

Table 2. Mean comparison of selected variables across landlord and tenant households

Variable’s name	Tenants (N = 214)		Sig diff.	Landlords (N = 244)
Head’s gender (female = 1)	0.084	(0.019)	<***	0.463	(0.031)
Head’s age is ≤ 35 year(yes = 1)	0.037	(0.012)	<**	0.069	(0.016)
Head’s age 35–60 years (yes = 1)	0.649	(0.032)	>***	0.483	(0.032)
Head’s age > 60 year (yes = 1)	0.313	(0.031)	<***	0.446	(0.031)
Head’s education (illiterate = 1)	0.621	(0.033)	<***	0.778	(0.026)
Male adult(number)	2.18	(0.087)	>***	1.34	(0.080)
Female adult (number)	1.64	(0.067)	>***	1.34	(0.066)
Oxen owned (number)	1.490	(0.070)	>***	0.561	(0.054)
Tropical Livestock (LTU)	3.23	(0.188)	>***	1.52	(0.153)
Own land (ha)	0.964	(0.053)		1.02	(0.048)

Note: *** & **, refers significant level at 1 % & 5 %, respectively. Numbers in parentheses are standard errors

Source: NMBU and MU household panel.

Table 3. Factors affecting land rental market participation (Renting in and renting out)

	Generalized order probit
Explanatory variable	Renting in		Renting out		Pooled order probit
Head’s gender (female = 1)	−0.800***	(0.127)	−0.800***	(0.127)	−0.765***	(0.126)
Head’s age > 35 years (yes = 1)	0.370**	(0.193)	0.370**	(0.193)	0.326*	(0.193)
Head’s age b/n 35 to 60 years (yes = 1)	0.240**	(0.095)	0.240**	(0.095)	0.243**	(0.095)
Male adult (number)	0.158***	(0.038)	0.158***	(0.038)	0.151***	(0.038)
Female adult (number)	0.070	(0.045)	0.070	(0.045)	0.067	(0.045)
Oxen owned (number)	0.277***	(0.059)	0.277***	(0.059)	0.270***	(0.058)
Own land (ha)	−0.268***	(0.079)	−0.268***	(0.079)	−0.230***	(0.078)
Tropical Livestock (TLU)	0.021	(0.022)	0.021	(0.022)	0.020	(0.022)
Plot distance from home (hr)	−0.696***	(0.135)	0.251*	(0.144)	−0.338***	(0.115)
Distance to market (hr)	0.092*	(0.055)	0.092*	(0.055)	0.083	(0.054)
Mean rainfall variability of rainy seasons (std. dev) two years lag	−0.001	(0.003)	−0.001	(0.003)	−0.001	(0.003)
Mean rainfall of rainy seasons of two years lag to the survey period	0.001	(0.002)	−0.004**	(0.002)	−0.001	(0.002)
Head’s education (illiterate = 1)	0.128	(0.132)	−0.205*	(0.122)	−0.071	(0.102)
Community fixed effect (yes =1)	yes		yes		yes
cons	0.658***	(0.237)	−1.157***	(0.232)

Dependent variable: probability of renting in and renting out of land in the land rental market. A generalized random effect order probit model was use to fix selection bias in relation to land rental market participation in the share tenancy market. This is extracted from a three-year balanced panel data for land rental market participation *: 10 %, **: 5 %, ***: 1 %, refers level of significance, respectively. Numbers in parentheses are robust standard errors clustered at household level.

Source: NMBU and MU household panel survey.