The rural non-farm economy, livelihood strategies and household welfare
This paper examines the relationship between rural non-farm employment and household welfare using nationally representative data from Madagascar. It focuses on labor outcomes in the context of household livelihood strategies that include farm and non-farm income earning opportunities. It identifies distinct household livelihood strategies that can be ordered in welfare terms, and estimates multinomial logit models to assess the extent of the barriers to choosing dominant strategies. It finds that high-return non-farm activities provide an important pathway out of poverty, but that barriers such as lack of (a) education, (b) formal credit and (c) access to telecommunications restrict participation in such activities. Individual employment choice models and estimates of earnings functions provide supporting evidence of these barriers. Although the poverty reduction effects may be limited, low-return non-farm activities also play an important role as safety nets by providing opportunities for ex ante risk reduction and ex post coping with shocks.
Volume (Year): 04 (2010)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: |
Web page: http://www.agecon.ksu.edu/accc/ncera210/JournalofCooperatives.htm
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Basu, Kaushik & Foster, James E, 1998.
"On Measuring Literacy,"
Royal Economic Society, vol. 108(451), pages 1733-49, November.
- Nikolaj Malchow-M�ller & Michael Svarer, 2005. "Wage - labour activities by agricultural households in Nicaragua," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1221-1246.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Stifel, David & Christiaensen, Luc, 2006.
"Tracking poverty over time in the absence of comparable consumption data,"
Policy Research Working Paper Series
3810, The World Bank.
- David Stifel & Luc Christiaensen, 2007. "Tracking Poverty Over Time in the Absence of Comparable Consumption Data," World Bank Economic Review, World Bank Group, vol. 21(2), pages 317-341, June.
- Pitt, Mark M & Rosenzweig, Mark R & Gibbons, Donna M, 1993. "The Determinants and Consequences of the Placement of Government Programs in Indonesia," World Bank Economic Review, World Bank Group, vol. 7(3), pages 319-48, September.
- Davidson, R. & Duclos, J.-Y., 1998.
"Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality,"
98a14, Universite Aix-Marseille III.
- Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
- Davidson, Russell & Duclos, Jean-Yves, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Cahiers de recherche 9805, Université Laval - Département d'économique.
- Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
- Christopher B. Barrett & Shane M. Sherlund & Akinwumi A. Adesina, 2008. "Shadow wages, allocative inefficiency, and labor supply in smallholder agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 21-34, 01.
- Tilman Brück, 2004.
"The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique,"
Discussion Papers of DIW Berlin
413, DIW Berlin, German Institute for Economic Research.
- Tilman Brück, 2004. "The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique," HiCN Working Papers 04, Households in Conflict Network.
- Brown, Douglas R. & Stephens, Emma C. & Ouma, James Okuro & Murithi, Festus M. & Barrett, Christopher B., 2006. "Livelihood strategies in the rural Kenyan highlands," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 1(1), December.
- Bhaumik, Sumon K. & Dimova, Ralitza & Nugent, Jeffrey B., 2006.
"Pulls, Pushes and Entitlement Failures in Labor Markets: Does the State of Development Matter?,"
IZA Discussion Papers
2258, Institute for the Study of Labor (IZA).
- Sumon Kumar Bhaumik & Ralitza Dimova & Jeffrey B. Nugent, 2006. "Pulls, Pushes and Entitlement Failures in Labor Markets: Does the State of Development Matter?," CEDI Discussion Paper Series 06-07, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Lanjouw, Peter, 2001. "Nonfarm Employment and Poverty in Rural El Salvador," World Development, Elsevier, vol. 29(3), pages 529-547, March.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- David E. Sahn & David C. Stifel, 2002. "Robust Comparisons of Malnutrition in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 716-735.
- Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
- Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
- François Bourguignon & Martin Fournier & Marc Gurgand, 2002. "Selection Bias Correction Based on the Multinomial Logit Model," Working Papers 2002-04, Centre de Recherche en Economie et Statistique.
- Barrett, Christopher B. & Bezuneh, Mesfin & Clay, Daniel C. & Reardon, Thomas, 2001.
"Heterogeneous Constraints, Incentives And Income Diversification Strategies In Rural Africa,"
14761, Cornell University, Department of Applied Economics and Management.
- Barrett, Christopher B. & Bezuneh, Mesfin & Clay, Daniel C. & Reardon, Thomas, 2001. "Heterogeneous Contraints, Incentives, and Income Diversification Strategies in Rural Africa," Working Papers 179567, Cornell University, Department of Applied Economics and Management.
- Zeller, Manfred & Sharma, Manohar P. & Henry, Carla & Lapenu, Cecile, 2003. "An Operational Method For Assessing The Poverty Outreach Performance Of Development Projects: Results From Four Case Studies In Africa, Asia And Latin America," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25907, International Association of Agricultural Economists.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
- Behrman, Jere R., 1999. "Labor markets in developing countries," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 43, pages 2859-2939 Elsevier.
- Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
When requesting a correction, please mention this item's handle: RePEc:ags:jlcoop:93887. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.