Adapting to drought: How do public works affect conservation and labor engagement in rural Ethiopia?

Abstract Support for life on land within the UN Sustainable Development Goals requires protection, restoration, and sustainable utilization of terrestrial ecosystems. This paper examines the effects of public works on soil and water conservation practices and labor participation in rural Ethiopia. Using data from the Living Standards Measurement Study-Integrated Surveys of Agriculture (LSMS-ISA) panel collected in 2011/12, 2013/14, and 2015/16, the study explores the correlation between drought and public works employment, employing satellite-based Enhanced Vegetation Index (EVI) anomalies as a proxy measure for drought shock. Using the Full Information Maximum Likelihood (FIML) approach, the study evaluates the effects of public work employment on resource conservation and labor engagement outcomes. Despite concerns in the literature that public works may crowd out participants' own soil and water conservation and agricultural work, the results suggest that public works likely contribute to enhanced soil and water conservation practices. The primary impact of the program is on physical measures, while its effect on biological soil and conservation measures is limited. In addition, participation in the program increases labor participation in agricultural activities but reduces work hours in non-agricultural activities. The findings suggest that public works can promote sustainable land use, provide a pathway to a better future, and improve food security by improving soil and water conservation practices and altering labor participation in competing activities in rural areas. JEL Classification: Q54, Q18, I38, Q2, J22, O55