Abstract:
The main objective of this study is the impact of productive safety net program (PSNP) on
household asset creation in janamora woreda. Both primary and secondary data are used
for this study. The primary data are collected through structure questionnaire from three
select kebeles 178PSNP and 153non PSNP ultra poor sample households of both kebeles
Then, collected data were analyzed by both descriptive statistics and econometric techniques.
In econometric analysis, the logit model was used to estimate the propensity score of
households to participate in productive safety net program given their observe
characteristics. Propensity score matching (PSM) was used to assess the impact of PSNP
on household asset creation.. The results from the logit model expected that, some relevant
explanatory variables such as households age, religious influence, family size, credit user,
had crop land , households who participate in other food security program, annual saving
,and market access that determines participation in PSNP positively at 10 percent 1percent
,5percent,10percent ,10percent ,1percent,5percent ,and 1percent statistical significant
respectively and some other explanatory variables such as participation employment creation
determines it negatively at 1% statistically significant. The finding of the study shows the
outcome variables, in the PSM outputs which was obtains after balancing of the covariates of
the participated and non-participated households through in the radius caliper 3 matching
estimation, the PSNP had not brought significant effect on household assets creation
.because of low transfer of cash, not all family members participating in PSNP and used
there transfer for smoothing consumption rather than asset accumulation. Based on the
finding the study recommends that participants in PSNP program should be encourage the
practices such as including all family members, increasing the transfer of payment ,income
generating activities and participating other food security program for creations of Assets.
Moreover, it is advisable that beneficiaries of the PSNP avail themselves with various
training programs the goal the program cannot be achieved .credit removes financial
constraint and enables them finance the initial capital of the poor household .therefore the
rural policy would do well to provide better access to credit for rural people by motivating
micro finance institution.
