Employment Patterns in Clusters of Foreign Agricultural Investments Farms in Rural Areas

Abstract

Employment outcomes from foreign land-based agricultural investments (FAI) are contested despite existence of paucity in literature on why individuals seek such employment. This paper assesses individuals’ motives for seeking or not seeking employment in FAI farms using multiple correspondence and cluster analysis to understand employment seeking patterns and their association with age, gender and household poverty. Analysis based on stratified proportionate random cross-sectional data collected in Karatu, Iringa and Njombe districts from populations near foreign farms. Three FAI farm employment seeking patterns were established namely individuals motivated by lack of employment alternatives, individuals preferring FAI farm employment and individuals who were curious to learn new knowledge, ideas and skills. FAI employment seeking pattern was independent of age or gender but it was significantly associated with household poverty (p = 0.05). Individuals seeking FAI employment due to lack of employment opportunities frequently belong to poorest households while individuals belonging to less-poor household preferred employment for curiosity to learn. Therefore, FAI doesn’t move individual out of poverty or make individual poor but is frequently attractive to individuals from poorest households with limited employment opportunities while those from less-poor household is a preferred employment for additional source of immediate income.