Analysis of the field work and the collected information of phase II

Gorée, Senegal - June, 2008

Goal of the data analysis The surveys are only significant and

representative at the local level However, they can be illustrative of the

regional dynamics and trends… The surveys combined with the regional

studies and chain analyses provide: a general description of local characteristics a justification of the choice of the selected

regions Information to respond to the program

hypotheses

Main characteristicsof the selected

regions

Descriptive analysisof the sample

Region 1 Region 2 Region 3

Main characteristics of the regional sampleLEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

Global income analysisper quintile

Farm incomeanalysis

Analysisof the heterogeneity

(local level)

Country

Level 1: regional data breakdown* Main characteristic of the regional sample

Demography Size of the household in adult equivalent Dependency ratio

Human capital Education

Social capital Network index

Structure of economic activities % of HH

Global income Level, distribution and structure of income => which allows to test

the differences between regions Mean: income shares are calculated for each household, and then the mean

of the household shares of each type of income is calculated

* At the household level per region: mean, median, min/max, standard deviation

Level 2: explanation of the heterogeneity or homogeneity of the regional results

If the analysis of the global income at the regional level gives a high standard deviation

=> check of the heterogeneity at the local level (locality, community, village)

* mean, median, min/max, standard deviation

Sampleof region 1

Income quintileQ1

Income quintileQ2

Income quintileQ3

Income quintileQ4

Income quintileQ5

Level 3: Global income classes analysis

In order to compare the income structure and their characteristics among the 7 RS countries, we must split our sample into 5 equal rural households’ quintiles from the poorest to the richest

This way of calculating the quintiles [or deciles] is different from income distribution analysis (level 1)

20% of HH20% of HH20% of HH 20% of HH 20% of HH

20% of income20% of income20% of income 20% of income 20% of income

1

2

1

2

Structure of global income

Multi-activities&

incomesources of the rural HH

Cropproduction

Livestockproduction

Agriculturalwageemployment

Transfers

No-agriculturalwageemployment

No-agriculturalself-employment

Agriculturalactivities

Non-agriculturalactivities

On-farm

incom

e

Off-farm

income

Rents

Sampleof region 1

Income quintileQ1

Income quintileQ2

Income quintileQ3

Income quintileQ4

Income quintileQ5

Level 3: Global income classes analysis

Farm income

Agricultural wages

Self-employment

Non agricultural

wagesTransfers Rents

Importance of a given income source in the global income at the household level Mono-variable analysis on the main characteristics per income quintile (mean, median, min/max, deviation)

=> Demography, human and social capital

Level 4: Farm income classes analysis

Sampleof region 1

Farm income class

1

Farm income class

2

Farm income class

3

Farm income class

4

Farm income class

x

Mono-variable analysis> factor endowment : land, workforce, capital and equipment=>Demography, human and social capital

Test of cross-tab analysis on explanatory variables (example)

Land sizeFarm

income class 1

Farm income class 2

Farm income class 3

Farm income class 4

Farm income class n

< 1 ha

1 – 2 ha

2 – 5 ha

> 5 ha

Number of HHs: n = 300 Probability of having a refrigerator:

If HH 1 has a refrigerator, than:

Durable goods index:

To allow cross-country comparison, the number of durable goods has to be the same in each country

Example: Durable goods index

Durable goods

Region 1

HH1

Refrigerator 54 Yes

Radio 126 Yes

TV 60 No

Cell Phone 81 No

Bicycle 75 Yes

Motorbike 12 No

Vehicle 3 No

18,0300

54orrefrigeratP

11 orrefrigeratD

85,025,0142,0118,01

1...11

111

D

PDPDD vehicleVehicleorrefrigeratorrefrigerat

Response to the main hypothesis of

RS

Existing processesof differentiation

among rural households

H1: segmentation on the basis of market access and integration process Identification of the integrated chains or

variations among chains? Criteria of integration?

Contracts? Structure of the value-chain? Marketing channel?

Characteristics of the HH integrated/ participating in integrated value-chain?

Implications of integration on farm income?

Region 1

Traditional channel

(without contracts)

Contract channel

Age of the chief of HH

Education

HH size (adult equivalent)

Network index of the chief of HH

Locality or distance to paved road

Farm size (ha)

Irrigation ratio

Use of fertilizers

Permanent employees (#/farm)

Casual labor (#/farm)

Family labor (% of permanent)

Farms with phone (%)

Equipped with irrigation system (%)

Equipped with transportation (%)

Equipment index

farms with a packing shed (%)

Capitalization level (% of land acquired over the last 5 year)

Capitalization level (variation of livestock stock over the last 5 years)

% of HH income from farming

% of HH income from non agri. activities

Access or type of credit

H1: segmentation and integration(result of Thursday’s pm discussion)

1. types of chains with integration characteristics of product / specific assets / market (product or demand driven)

2. type of marketing (HH level) Spot market Middlemen Monopsony S.Markets

3. formal / informal contracts 4. characteristics of contracts based on:

Product characteristics Inputs / services provision

5. Index of integration (% of farm income with integrated chains)

6. Characteristics of the integrated HH 7. Implications of integration on farm income?

H3: Segmentation on the basis of diversification of activities & income What definition of diversification?

Farm / off-farm - Index of diversification? State of diversification in the selected

regions Importance of agricultural income Development of waged labor (agri/non-agri) Other activities and transfers

Characterization of the HH diversifying their activities and income sources

Implication of diversification on global income