Analysis of the Subjective Economic Welfare and Well-Being of Pyrethrum Farmers in Makete District; Tanzania

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Romanus Lucian Dimoso
Zainabu Ahmad Kwikwega

Abstract

This paper made an analysis of the subjective economic welfare and well-being of pyrethrumfarmers in Makete District; Tanzania. The study employed a quantitative approach and a crosssectionalstudy design was opted. The Leyden approach was employed to analyze farmers’subjective economic welfare by posing the empirical basis of the Income Evaluation Question(IEQ) developed by Van Praag (1971). The result for the want parameter (a proxy of welfarefunction) was 13.9537 (I=eu, I=e13.937). The exponent of want parameter represented the averageincome an individual was considered insufficient (Tshs. 1,148,193/- per annum). The resultimplies that farmers needed an annual total average income of more than Tshs. 1,148,193/- forsatisfying their needs or wants. This amount is less than the annual minimum wage of Tshs.1,200,000/- (URT, 2013a). Satisfaction with life as a whole question was also employed toevaluate subjective well-being using descriptive analysis. Results show that: 57.7% and 4.1% offarmers were satisfied and very satisfied respectively with the way they lived after startingselling pyrethrum. On marketing factors, however, results reflected high dissatisfaction levels.This study recommends that agricultural produce and marketing policies for rural pyrethrumfarmers should be considered in a multidimensional strategy in a move to improving thesubjective economic welfare and well-being of pyrethrum farmers in Makete district.

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