Non‐farm employment and poverty reduction in Mauritania

Abstract

This study examines the effect of non‐farm labour participation on poverty reduction in rural Mauritania. Farm households with more land and livestock participate to a greater extent in non‐farm activities compared with households with smaller land or cattle. We study poverty's relationship with non‐farm labour activities in terms of the incidence as well as the intensity and severity of poverty. The study is the first to highlight the contribution of the non‐agricultural sector in the reduction of poverty in the rural areas of Mauritania. We apply probit, propensity score matching and inverse probability weighting techniques to determine the signs and impacts of participation on poverty reduction. The results show that the probability of being poor is 5.9% lower among households that have at least one member participating in non‐farm activities compared with those only associated with the agriculture sector. Participation in non‐farm activities is associated with lower intensity and severity of poverty (3.6% and 1.9%, respectively). We find that surplus labour released by the agriculture sector is absorbed in the non‐farm economy. Income generation through diversification into non‐farm activities therefore seems to be an effective way to reduce poverty in rural areas.

Nonfarm entrepreneurship, crop output, and household welfare in Tanzania: An exploration of transmission channels

“…This finding suggests that nonfarm entrepreneurship offers an alternative source of income that supplements or complements farm income for household consumption expenditure and food consumption expenditure. We argue that nonfarm entrepreneurship is a key strategy that farmers may adopt to enhance welfare outcomes (Ba et al, 2021; Babatunde & Qaim, 2009; Bui & Hoang, 2021; Kilic et al, 2009; Mishra et al, 2015).…”

“…Nonfarm entrepreneurship offers an alternative source of employment for rural households (Lanjouw & Lanjouw, 2001). Participation in nonfarm income‐generating activities is associated with rapid growth in earnings and income (Ba et al, 2021; Barrett et al, 2001; Bezu et al, 2012).…”

“…Income from nonfarm entrepreneurship can enhance household welfare through increased consumption expenditure and food expenditure (Ba et al, 2021; Babatunde & Qaim, 2009; Bui & Hoang, 2021; Gansonré, 2021; Kihiu & Amuakwa‐Mensah, 2021; Kim et al, 2021; Mishra et al, 2015; Mondal et al, 2021; Zereyesus et al, 2017). Nonfarm participation may also relax liquidity constraints and enable households to meet education expenditure, and thus accumulate human capital that yields high returns in the long‐term (Bezu et al, 2012).…”

“…Nonfarm entrepreneurship can either complement crop production and household welfare (Ba et al, 2021; Gansonré, 2021; Isoto & Kraybill, 2017; Li et al, 2021; Mondal et al, 2021; Zereyesus et al, 2017) or compete with it (Amare & Shiferaw, 2017; Chang et al, 2022; Nasir & Hundie, 2014). Consequently, an interaction that results in a complementary effect implies that policies reinforcing the relationship would be beneficial.…”

Analisis pengaruh akses tenaga listrik yang handal terhadap performa usaha mikro kecil di Indonesia

“…Usaha mikro dan kecil juga dikatakan sebagai mesin pertumbuhan ekonomi dan sumber pendapatan bagi rumah tangga miskin (Tambunan, 2008). Usaha mikro dan kecil (di luar pertanian) juga dipandang sebagai sumber pendapatan yang penting sebagai safety net income terutama ketika terjadi gagal panen ataupun gejolak pada harga komoditas (Vatta & Sidhu, 2010;Ba et al, 2021). Cherdchuchai & Otsuka (2006) dari penelitiannya di desa-desa di Thailand menyimpulkan bekerja pada usaha di luar sektor pertanian merupakan cara strategis untuk keluar dari kemiskinan.…”