Impacts of the Productive Safety Net Program in Ethiopia on Livestock and Tree Holdings of Rural Households

We evaluated the impacts of the Ethiopian Productive Safety Net Program (PSNP) on rural households’ holdings of livestock and forest assets including trees, applying both regression analysis and propensity score matching to panel data.

We found no indication that participation in PSNP induces asset disinvestment; rather, households increased tree holdings, but not livestock. Shocks appear to lead households to disinvest in livestock, but not trees. Results suggested increased forestry activity with PSNP participation and that credit access positively impacted livestock holdings.