Linking Risk Preference, Women’s Empowerment, Farm Investment and Household Well-Being

Authors

Samuel Olusesi Olumide, University of Nebraska-LincolnFollow

First Advisor

Christopher R. Gustafson

Second Advisor

Anne G. Timu

Date of this Version

8-2024

Document Type

Thesis

Citation

A thesis presented to the faculty of the Graduate College at the University of Nebraska in partial fulfillment of requirements for the degree of Master of Science

Major: Agricultural Economics

Under the supervision of Professor Christopher R. Gustafson

Lincoln, Nebraska, August 2024

Comments

Copyright 2024, Samuel Olusesi Olumide. Used by permission

Abstract

A nuanced understanding of intra-household dynamics can inform the design of more effective empowerment and agricultural investment policies. By integrating household risk preferences and empowerment dynamics, this work offers valuable insights into the complex mechanisms driving household welfare and provides a framework for future interventions to promote gender equality and economic development in rural settings. This thesis addresses three core hypotheses: first, that the spouses of risk-seeking male heads are more likely to be disempowered compared to those of risk-averse male heads; second, that households with risk-seeking male heads and disempowered spouses are likely to invest more in farming activities; and third, that such households are more prone to food insufficiency. Results from the probit regression model support the first hypothesis, indicating a significant negative relationship between male heads’ risk-seeking preferences and the empowerment of their spouses. The linear regression analysis used to test the second hypothesis reveals that households with risk-seeking male heads, regardless of the empowerment status of the spouse, tend to have higher levels of farm investment. However, the third hypothesis finds no significant evidence linking the combination of risk-seeking male heads and disempowered spouses to household food insufficiency. The findings suggest crucial policy implications: while risk-seeking tendencies in male heads can lead to greater farm investments, they concurrently contribute to the disempowerment of female spouses. Therefore, women’s empowerment initiatives should aim not only to bolster women's roles and resources but also to modulate the dynamics within households to prevent disempowerment arising from male dominance in decision-making.

Advisor: Christopher R. Gustafson