Spousal Effects on Operators Labour Allocation to Non-Farm Activities in Southwestern Nigeria

The study investigated effect of spouse participation on operators’ labour allocation to non-farm activities in southwestern Nigeria. Multistage sampling technique was used to select 396 respondents and data were gathered on socio-economic, non-farm and locational characteristics and other variables. Data analysis was carried out using descriptive statistics and endogenous switching regression model (ESR). The results showed that, the mean age of respondents was 47.4±9.7 years, 64.5 percent were male and non-farm activities engaged in included carpentry, petty trading, agency banking (POS), sales of herbs and second-hand clothes. The probit model of the selection equation revealed that, age, age squared, education, remittances were the significant variables influencing participation in non-farm activities. The full information maximum likelihood estimates (FIML) of the ESR model showed that spouse participation decisions on operator’s labour allocation to non-farm activities is influenced by age, age of household heads, spouse education and non-farm income while for operators whose wife did not participate is impacted by age, age squared, education, remittances, cultivated land size and non-farm income. The study revealed that, spouse participation plays significant role on operators’ labour allocation to non-farm activities. Moreover, operators whose spouses engaged or participated in non-farm activities tend to increase their non-farm labor supply with access to cultivable land area. Farming households with both operator and spouse participating in non-farm activities are better off due to hierarchical sorting into activities. It was recommended that spouse should be given access to education, cultivable land and remittances and cottage industries should be established to increase non-farm income.