THE DISINCENTIVE EFFECT OF FOOD‐FOR‐WORK ON LABOUR SUPPLY AND AGRICULTURAL INTENSIFICATION AND DIVERSIFICATION IN ETHIOPIA

Abstract

Food‐for‐work (FFW) as a form of food aid has been criticised for its many disincentive effects. This paper investigates alleged disincentive effects of food‐for‐work (FFW) on labour supply and agricultural intensification and diversification in one district of Ethiopia, using a ranking exercise and a small survey of farmer opinion. Despite the popularity of FFW as a source of income, careful project design meant that disincentives were largely avoided. In particular, the take‐up of FFW was restricted, by a combination of self‐targeting and community based administrative rationing; and agricultural intensification and diversification were encouraged directly through extension programmes.