We applied the recent wave of the Ethiopia Socioeconomic Survey collected in 2014, and
investigated the interrelations between farm income, off-farm income, food security and
nutrition security. We hypothesized that livelihood assets together with local socioeconomic
factors are major determinants of farm and off-farm income. Food security depends on farm
income, off-farm income and public support programs. Furthermore, nutrition security (which is
represented by the z-scores of anthropometric measures: height-for-age, weight-for age, and
weight-for-height of under five children) is a function of food security and health status. To
empirically estimate these relationships, we applied ordinary least squares, two-stages least
squares and three stages least squares estimation techniques to a multi-equation model. Method
choice was based on the results of endogeneity tests. The result showed that off-farm income,
age and availability of major farm assets (cattle and land) enhance farm income, whereas travel
cost decreases farm income. We also found that human capital variables and farm income
improve off-farm income. Farm income also enhances food security of households. The impact
of farm income on the z-scores of the anthropometric indicators showed a mixed result. We
found a positive association with z-scores of height-for-age, a negative association with the zscores
of weight-for-age and insignificant impact on the z-scores of weight-for-height. The
impact of food security also showed mixed results. These results reflect that the impacts of farm
income and food security on nutrition security depend on the indicators used. Mother’s literacy
showed a positive impact on Z-scores for height-for-age estimated by two stages least squares.
We found that male and younger children have higher z-scores of the nutrition security
indicators. This calls for special attention to gender and age aspects while designing nutrition
related programs. Off-farm income did not show a statistically significant impact on any of the
nutrition security indicators.