Nonfarm Employment and Rural Welfare: Evidence from the Himalayas

Micevska, Maja; Rahut, Dil Bahadur

doi:10.1093/ajae/aau040

Cited by 46 publications

(30 citation statements)

References 30 publications

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“…For Sub‐Saharan Africa, there is evidence for welfare improving effects of wage employment in emerging agro‐industries (Herrmann and Grote, 2015; Herrmann, 2017; Van den Broeck et al ., 2017, 2018; Getahun and Villanger, 2018). Two studies specifically distinguish high‐ from low‐earning off‐farm activities (without distinguising between wage‐ and self‐employment), with one study concluding that both types of employment contribute to household well‐being (Holden et al ., 2004) and the other concluding that only high‐return activities improve household well‐being (Scharf and Rahut, 2014). Two other studies use panel data to study the effects of household participation in rural non‐farm employment, omitting the effect of agricultural wage employment.…”

Section: Concepts and Literaturementioning

confidence: 99%

Employment Dynamics and Linkages in the Rural Economy: Insights from Senegal

Hoyweghen¹,

Broeck²,

Maertens³

2020

J Agricultural Economics

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Evidence on rural wage employment is thin and lacks nuance for different employment sources, insights on dynamic effects, and an understanding of the channels of effects. We assess conceptually and empirically the direct and indirect welfare effects of entry and continuation in different types of wage employment in rural Senegal. Using panel data, fixed effects and first-difference estimation, we show substantial positive welfare and linkage effects. We find that participation in wage employment increases per capita income by 143%, and reduces poverty, poverty gap and food insecurity by, respectively, 63%, 89% and 48%. While the direct effect on income is larger for non-agricultural and contractual wage employment, the indirect income effects through self-employment are more pronounced for agricultural and casual wage employment. Our results imply that job creation is important for rural development, that wage employment in agriculture can lead to considerable growth multiplier effects, and that synergies exist between large-scale and small-scale agriculture.

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Section: Concepts and Literaturementioning

confidence: 99%

Employment Dynamics and Linkages in the Rural Economy: Insights from Senegal

Hoyweghen¹,

Broeck²,

Maertens³

2020

J Agricultural Economics

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“…In addition, off-farm employment may affect inter-household inequality (Reardon et al, 2001). Specifically, low-income off-farm employment may reduce inequality while high-income off-farm employment tends to increase inequality (Scharf & Rahut, 2014).…”

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confidence: 99%

Impacts of off‐farm employment on welfare, food security and poverty: Evidence from rural Vietnam

2020

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Impacts of off-farm employment on welfare, food security and poverty: Evidence from rural Vietnam How off-farm employment can enhance welfare in terms of food consumption and poverty alleviation is a critical question facing many developing countries. This study addressed that question by pursuing two objectives: (i) to quantify the impact of off-farm employment on rural households' welfare, food security and poverty; and (ii) to examine the factors that affect their decision to work off-farm. Using panel data, we estimated a difference-indifference combined with a propensity score matching model. The findings show that offfarm employment improves income, ensures food security and contributes to poverty alleviation. The results also show that age, marital status, education, labour, financial capital, land, location, market access and losses from natural disasters are significant contributing factors to the decision to participate in off-farm employment. The findings suggest that to improve the welfare of rural households, the Vietnamese government should proceed with policies that enhance their opportunities for participation in off-farm employment.

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“…Honduras (Ruben and van den Berg, 2001), for India (Scharf and Rahut, 2014), and for Bangladesh (Mishra et al, 2015). This implies that rural labour markets are inequality increasing.…”

Section: Discussionmentioning

confidence: 99%

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper is the first to present panel data evidence on the longer-term impact of expansion of global value chains and large-scale export-oriented farms in developing countries. Using panel data from two survey rounds covering a seven-year period and fixed effects regression, we estimate the longer-term income effects of wage employment on large-scale farms in the rapidly expanding horticultural export sector in Senegal. In addition to estimating average income effects, we estimate heterogeneous income effects using fixed effects quantile regression. We find that poverty and inequality reduced much faster in the research area than elsewhere in Senegal. Employment in the horticultural export sector significantly increases household income and the income effect is strongest for the poorest households. Expansion of the horticultural export sector in Senegal has been particularly pro-poor through creating employment that is accessible and creates substantial income gains for the poorest half of the rural population. These pro-poor employment effects contrast with insights in the literature on increased inequality from rural wage employment.

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Nonfarm Employment and Rural Welfare: Evidence from the Himalayas

Cited by 46 publications

References 30 publications

Employment Dynamics and Linkages in the Rural Economy: Insights from Senegal

Employment Dynamics and Linkages in the Rural Economy: Insights from Senegal

Impacts of off‐farm employment on welfare, food security and poverty: Evidence from rural Vietnam

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

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