Abstract

ABSTRACTThis article presents a case study challenging the dominant view that diversification out of agriculture brings higher household incomes in rural areas. In the area around Phan Thiet City in Vietnam, daily wages for casual agricultural labour are comparable to those for unqualified non-agricultural labour; in some cases, the former can even be higher. These facts can be explained by the dynamism of the agricultural sector in the area, the small size of household plots, the importance of cash crops in the production system, the adequacy of access to markets and the general use of cash for all transactions.

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