Role of nonfarm income and education in reducing poverty: Evidence from Ethiopia, Kenya, and Uganda

Progress toward halving extreme poverty by 2015, a major Millennium Development Goal (MDG), is very slow in sub-Saharan Africa (United Nations 2005). This slow progress in sub-Saharan Africa contrasts with the remarkable progress in some other regions, such as East Asia, which are moving steadily toward or even beyond the goal. Concerned about the lackluster achievements thus far in sub-Saharan Africa, policymakers are struggling to find the means to achieve poverty alleviation goals. Despite such efforts, however, there is no agreement on how policymakers should spend their limited resources to reduce poverty in the region.