Impact of urban productive safety net program on urban households’ asset accumulation and food consumption rate in Dessie City, South Wollo Zone, Amhara Region, Ethiopia

Abstract

Agriculture is the driver of economic growth in many developing countries like Ethiopia, where it often represents at least 25% of gross domestic product. But the quality and productivity of the land depends on the way agriculture is practiced. Better agricultural techniques are necessarily including Productive Safety net Program. Urban Productive Safety Net Program is designed to support the poor households and establish urban safety net mechanisms. While several studies have examined the effects of rural productive safety net programs, the outcomes of similar programs in urban areas are not well documented. This knowledge gap hinders the ability to effectively design and implement urban productive safety net programs. The main objective of this study was to assess the impact of urban productive safety net program on asset accumulation and consumption rate in Dessie city. Both primary and secondary data sources were used. A total of 112 households were selected randomly among the public work Urban Productive Safety Net Program beneficiary and non-beneficiary households. Descriptive analysis, inferential statistics and econometric models were used for analysis. Based on the econometric estimation results the demographic and socio-economic variables such as education, access to credit, access to extension services and adult male labor force revealed positive relation to public work urban productive safety net program beneficiary and non-beneficiary household’s asset accumulation and consumption. The impact of program participation was also found to be positive and significant for both home asset and community asset. While food and non-food consumption even the total consumption and food security status are also positive. Generally, the result indicated that, due to program participation beneficiary households have higher home asset and community asset and better consumption and food security status.