Impact of Cooperative Membership on Rural Income Generation in Southwest, Nigeria

Abstract

This study examines the impact of cooperative membership on rural income generation. It also analyzes the factors influencing participation in cooperatives among rural households in Southwest, Nigeria. The study was designed to account for selection bias into cooperative organizations. Rural household survey data were used and the estimates were based on both the Probit model and non-parametric propensity score matching method. The findings show that income generated through cooperative membership is approximately 10% higher than those generated by noncooperative members. Empirical estimates of determinants of cooperative membership indicate that years of education, age and land size have significant influences on the decision to join cooperatives.

Keywords

• Cooperatives
• Poverty
• Impact evaluation
• Rural
• Propensity score matching