Human beings cooperate from single occasions to repeated actions which can even pass from one generation to the other. Cooperation is mostly successful through network formation which can have many patterns: Friendship network among adolescents; trade network between countries; labor sharing network among rural households and so on. Labor sharing network in rural Ethiopia is the focus of this research. In rural Ethiopia its hard to find insurances and credit facilities for small farm holders. Agricultural labor market is still at its lowest stage. Using panel data (1994-2009) from rural...