THE IMPACTS OF PRODUCTIVE SAFETY NET PROGRAM ON HOUSEHOLD’S ASSET CREATION IN CASE OF JANAMORA DISTRICT

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.