The returns to participation in the non-farm sector in rural Rwanda
AbstractIn this paper, we investigate the differences in outcomes (earnings and consumption) between individuals (households) who participate in the non-farm sector and those who do not. We use propensity score matching methods, where we create appropriate comparison groups of individuals and households. First we find that non-farm self-employed individuals in rural Rwanda have significantly higher earnings than farm workers and non-farm formal employees. Second, we show that the benefits to non-farm self-employment are much higher among the non-poor than among the poor. Third, we show that diversified households, those with a farm and a non-farm enterprise, are less likely to be poor. Finally, farm households who do not participate in the market have significantly lower consumption levels than households that do. However, the benefits to market participation appear to matter less for the poor than for the non-poor. We find little difference in expenditures between market participants and non-market participants, for comparable households in the bottom 40% of the expenditure distribution.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3462.
Date of creation: 01 Dec 2004
Date of revision:
Environmental Economics&Policies; Public Health Promotion; Health Monitoring&Evaluation; Decentralization; Housing&Human Habitats; Livestock&Animal Husbandry; Crops&Crop Management Systems; Health Monitoring&Evaluation; Environmental Economics&Policies; Housing&Human Habitats;
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