IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/42009.html
   My bibliography  Save this article

Determinants of non-farm employment and non-farm earnings in Ecuador

Author

Listed:
  • Vasco, Cristian
  • Tamayo, Grace Natalie

Abstract

This article analyses the determinants of both participation in non-farm employment and nonfarm earnings in Ecuador. Using the Dubin-McFadden two-step estimation method, the results show that women are more likely than men to engage in non-farm self-employment but earn significantly less than men employed in the non-farm sector. Non-farm wage employment is a common choice among more educated individuals in landless households, while farm wage employment seems to be the only source of employment for uneducated landless people. Participation in non-farm work is more likely in areas located near medium-sized cities with dynamic economies. Finally, there are regional differences in employment patterns which appear to be associated with both the availability and the quality of land. This information is relevant in relation both to rural population growth and to the continuous process of land fragmentation in rural Ecuador.

Suggested Citation

  • Vasco, Cristian & Tamayo, Grace Natalie, 2017. "Determinants of non-farm employment and non-farm earnings in Ecuador," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    • Handle: RePEc:ecr:col070:42009
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/42009
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    2. Elbers, Chris & Lanjouw, Peter, 2001. "Intersectoral Transfer, Growth, and Inequality in Rural Ecuador," World Development, Elsevier, vol. 29(3), pages 481-496, March.
    3. Alberto Isgut, 2004. "Non-farm Income and Employment in Rural Honduras: Assessing the Role of Locational Factors," Journal of Development Studies, Taylor & Francis Journals, vol. 40(3), pages 59-86.
    4. Sonia Laszlo, 2005. "Self-employment earnings and returns to education in rural Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1247-1287.
    5. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    6. Aziz Atamanov & Marrit Van den Berg, 2012. "Participation and returns in rural nonfarm activities: evidence from the Kyrgyz Republic," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 459-471, July.
    7. François Bourguignon & Martin Fournier & Marc Gurgand, 2007. "Selection Bias Corrections Based On The Multinomial Logit Model: Monte Carlo Comparisons," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 174-205, February.
    8. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    9. Jonasson, Erik & Helfand, Steven M., 2010. "How Important are Locational Characteristics for Rural Non-agricultural Employment? Lessons from Brazil," World Development, Elsevier, vol. 38(5), pages 727-741, May.
    10. North, Liisa L. & Cameron, John D., 2000. "Grassroots-Based Rural Development Strategies: Ecuador in Comparative Perspective," World Development, Elsevier, vol. 28(10), pages 1751-1766, October.
    11. Lanjouw, Peter, 2001. "Nonfarm Employment and Poverty in Rural El Salvador," World Development, Elsevier, vol. 29(3), pages 529-547, March.
    12. Ferreira, Francisco H. G. & Lanjouw, Peter, 2001. "Rural Nonfarm Activities and Poverty in the Brazilian Northeast," World Development, Elsevier, vol. 29(3), pages 509-528, March.
    13. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristian Vasco & Diego Salazar & Darío Cepeda & Gustavo Sevillano & Juan Pazmiño & Shirley Huerta, 2022. "The Socioeconomic Drivers of Ethical Food Consumption in Ecuador: A Quantitative Analysis," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    2. Ma, Wanglin & Vatsa, Puneet & Zheng, Hongyun & Rahut, Dil Bahadur, 2022. "Nonfarm employment and consumption diversification in rural China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 582-598.
    3. Cristian Vasco & Rodrigo Valdiviezo & Herman Hernández & Valdano Tafur & David Eche & Estefanía Jácome, 2020. "Off-Farm Employment, Forest Clearing and Natural Resource Use: Evidence from the Ecuadorian Amazon," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    4. Sadeghi, Azin & Zhunusova, Eliza & Günter, Sven & Dieter, Matthias, 2023. "Households' livelihood in restricted forest landscapes: What is the impact of contextual factors?," Forest Policy and Economics, Elsevier, vol. 154(C).
    5. Iravani, Samaneh & Kakhki, Mahmoud Daeshvar & Ghorbani, Mohammad & Karbasi, Alireza, 2019. "Determinants of Rural Non-Farm Employment in Neyshabur: Application of Multilevel Multinomial Logit Model," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 2).
    6. Kiros Tsegay & Hongzhong Fan & AM Priyangani Adikari & Hailay Shifare, 2021. "Does gender matter for household livelihood diversification in Ethiopia rural areas?," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 221-232, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benjamin Davis & Paul Winters & Gero Carletto & Katia Covarrubias & Esteban Quinones & Alberto Zezza & Kostas Stamoulis & Genny Bonomi & Stefania DiGiuseppe, 2007. "Rural Income Generating Activities; A Cross Country Comparison," Working Papers 07-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Jonasson, Erik & Helfand, Steven M., 2010. "How Important are Locational Characteristics for Rural Non-agricultural Employment? Lessons from Brazil," World Development, Elsevier, vol. 38(5), pages 727-741, May.
    3. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    4. Maja Micevska & Dil Bahadur Rahut, 2008. "Rural Nonfarm Employment and Incomes in the Himalayas," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 163-193, October.
    5. C. Duvivier & S. Li & M.-F. Renard, 2013. "Are workers close to cities paid higher nonagricultural wages in rural China?," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4308-4322, October.
    6. Pascual, Unai & Barbier, Edward B., 2005. "On- And Off-Farm Labor Decisions By Slash-And-Burn Farmers In Yucatan (Mexico)," Environmental Economy and Policy Research Discussion Papers 31926, University of Cambridge, Department of Land Economy.
    7. Dil Bahadur Rahut & Maja Micevska Scharf, 2012. "Livelihood diversification strategies in the Himalayas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 558-582, October.
    8. Erik Jonasson & Steven M Helfand, 2008. "Locational Determinants of Rural Non-agricultural Employment: Evidence From Brazil," Working Papers 200802, University of California at Riverside, Department of Economics, revised Jan 2008.
    9. Insa Flachsbarth & Simone Schotte & Jann Lay & Alberto Garrido, 2018. "Rural structural change, poverty and income distribution: evidence from Peru," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(4), pages 631-653, December.
    10. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    11. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    12. Lay, Jann & M'Mukaria, George Michuki & Omar Mahmoud, Toman, 2007. "Boda-bodas Rule: Non-agricultural Activities and Their Inequality Implications in Western Kenya," GIGA Working Papers 48, GIGA German Institute of Global and Area Studies.
    13. Kiros Tsegay & Hongzhong Fan & AM Priyangani Adikari & Hailay Shifare, 2021. "Does gender matter for household livelihood diversification in Ethiopia rural areas?," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 221-232, September.
    14. Marwan Benali & Bernhard Brümmer & Victor Afari‐Sefa, 2018. "Smallholder participation in vegetable exports and age‐disaggregated labor allocation in Northern Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 549-562, September.
    15. 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.
    16. Cristian Vasco & Rodrigo Valdiviezo & Herman Hernández & Valdano Tafur & David Eche & Estefanía Jácome, 2020. "Off-Farm Employment, Forest Clearing and Natural Resource Use: Evidence from the Ecuadorian Amazon," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    17. Davis, Benjamin & Winters, Paul & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Stamoulis, Kostas & Azzarri, Carlo & DiGiuseppe, Stefania, 2010. "A Cross-Country Comparison of Rural Income Generating Activities," World Development, Elsevier, vol. 38(1), pages 48-63, January.
    18. Trung, Le Dang & Oostendorp, Remco H., 2017. "Regional Labor Market Integration, Shadow Wages and Poverty in Vietnam," World Development, Elsevier, vol. 89(C), pages 34-56.
    19. Cocchi, Horacio & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2004. "Farm Benefits And Natural Resource Projects In Honduras And El Salvador," 2004 Annual meeting, August 1-4, Denver, CO 20328, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Alwin D'Souza & Ashok K. Mishra & Stefan Hirsch, 2020. "Enhancing food security through diet quality: The role of nonfarm work in rural India," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 95-110, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:42009. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.