Non-farm Jobs Research Articles

Achieving inclusive urbanization through county-led industrial specialization: from the perspective of rural labor supply

PurposeThe role of intermediate urban centers (IUCs) (like towns/small cities/rural counties) between large cities and villages in leading urbanization has been increasingly highlighted. This article conceptually and empirically examines what types of industrial agglomeration (specialized or diversified agglomeration) of rural county in China would provide a more inclusive and efficient local labor market for rural workers to be inclusively urbanized.Design/methodology/approachWe employ a three-stage labor supply model to theoretically generalize the decisions of rural workers to migrate to large city, to undertake nonfarm jobs in rural counties and the length of nonfarm jobs. Then, combining three national-level datasets of China (National Economic Census (NEC), China Household Income Project (CHIP) and the China county statistical yearbook), we explore how the type of industrial agglomeration in a rural county affects the labor supply decision of rural workers.FindingsWe show that rural workers in rural counties with higher level of industrial specialization are more likely to: (1) work locally than migrating to large cities; (2) find nonfarm jobs by themselves instead of relying on social networks (3) find a more stable and formal nonfarm job. These effects are significant when rural counties specialize in industries that they have local comparative advantages compared to large cities. This work provides insights into achieving inclusive urbanization by developing industry specialization in rural counties in China, which may also be useful for other developing countries.Originality/valueFirst, the conceptual framework of this paper extends the basic model of rural-urban migration longstanding in the literature, to a multi-choice and three-stage labor supply model. Second, we empirically quantify the industrial structure of rural counties using unique dataset, which has been emphasized in the development economics literature but neglected due to data limitations. Third, this paper expands our understanding of the role of rural counties in inclusive urbanization and contributes to the future development of the county-led urbanization policies.

International remittances and labor supply in Nigeria: Do educational attainment and household income matter?

AbstractThe effect of remittances on the labor supply decisions of recipients remains a subject of contention. To contribute to the debate, we investigate how the educational attainment and household income of remittance recipients shape their decisions to work. Using data from the 2018–2019 living standard measurement survey for over 61,000 Nigerians and applying the instrumental variable probit and Tobit techniques, we find that remittances are associated with an occupational switch from agriculture to nonagricultural (paid jobs and nonfarm enterprises) works. Specifically, the results show that remittance recipients are more likely to exit or reduce the hours worked on the farm, regardless of educational attainment and household income status. On the other hand, remittances promote labor supply to paid jobs and nonfarm enterprises, especially among the less educated in Northern Nigeria. In terms of household income, the positive effect of remittances on nonfarm jobs only holds for individuals in the top income quartile, regardless of their region of residence. Our findings are robust to alternative estimation techniques and hold important cues for policymakers.

Merging adoption of natural climate solutions in agriculture with climatic and non-climatic risks within an (intra)gendered framework.

The extant research on climate variability shares significant theoretical contributions to vulnerability and risks. However, the literature mostly focuses on technical solutions to climate extremes which undermines efforts to identify and solve the dynamics within gender groups in using agricultural-based natural climate solutions (NCS) to address climatic and non-climatic risks. With this in mind, this study implements both quantitative and qualitative approaches including household surveys, key informant interviews, and focus group discussions to investigate the adoption of NCS within gender groups to address climatic and non-climatic risks in three selected communities (Katanga, Dakio, and Zonno) in the Bolgatanga East District of Upper East Region of Ghana. The Relative Importance Index (RII) was used to rank the key climatic and non-climatic risks confronting smallholder farmers in the district. Male and female smallholder farmers affirmed that there has been variation in the climate compared to their childhood. The results indicated climate change-induced erosion (RII = 0.268) as the highest climatic risk among male smallholder farmers. Increased bushfire (RII = 0.263) was the highest climatic risk affecting female smallholder farmers. The findings show that the high cost of farm inputs (RII = 0.505) is the highest non-climatic risk among the male smallholder farmers whereas inadequate credit facilities (RII = 0.295) affected most of the female smallholder farmers. In adapting to the climatic risks, both male and female smallholder farmers with no formal education plant early maturing crop varieties and cover crops on their farmland. Others engage in traditional non-farm activities such as weaving by using renewable materials with reduced ecological footprints to address non-climatic risks. The male and female smallholder farmers with post-secondary education typically resort to temporal migration during the dry season to work on non-farm jobs. Acknowledging the intra-gendered adoption of NCS among marginalized farming households; not only protects against maladaptation but also improves local-level resilience and climate risk management in Ghana.

Rural households' livelihood adaptation strategies in the face of changing climate: A case study from Pakistan

Rural and agricultural communities' adaptation to climate change has gained significant attention owing to many countries' vulnerability to climate change risks. A similar trend has been witnessed in South Asia, a highly climate-vulnerable region, where research has grown dramatically considering the agriculture sector's vulnerability to climate-induced disasters. However, little attention has been paid to the adaptation of the livelihoods of rural households. This research, therefore, takes the case of Pakistan to explore livelihood adaptation strategies of rural households to climate change and investigate the factors that expedite or halt the adoption of livelihood diversification strategies. A multistage sampling design is used in this research, where 480 rural households from the Punjab province of Pakistan were selected and interviewed using stratified and random sampling approaches. A multivariate probit (MVP) regression model is employed to analyze the factors affecting households' adoption of livelihood adaptation strategies. The results show that besides adaptation of agronomic operations (agricultural adaptation strategies), rural households in the study area employed a wide range of strategies to adapt their livelihoods to climate change. These strategies include poultry and livestock farming, value addition of farm produce, trading of animals and farm commodities, small businesses (shops, etc.), daily wage labor, horticultural crop farming, and non-farming jobs. The estimates of the MVP model revealed that respondents' education, household size, income, access to a credit facility, access to farm advisory services, and access to climate forecasts have significantly influenced the choice of livelihood adaptation strategies. Based on these findings, this research recommends that the authorities should make efforts to improve farmers' understanding of the adaptation of climate change risks and educate them to adopt multiple livelihood options to improve the resilience of their livelihoods to climate-induced risks. This research has important policy implications for other countries with similar socio-economic features.

Impact of non-agricultural employment on industrial structural upgrading -Based on the household consumption perspective.

China's rural revitalization strategy has expanded non-agricultural employment opportunities for rural residents. This has directly raised farmers' incomes and household expenditures, which in turn has contributed to the upgrading of industrial structure. Using provincial data for 2012-2021, our study investigates how this employment transition affects industrial development. The effect of rural residents' consumption expenditures on this relationship is also explored through a linkage model to help measure the extent of the impact. This study further explores the regional differences in this effect and its robustness. The findings suggest that non-farm employment significantly contributes to industrial structural upgrading. However, this effect is not consistent across regions. Moreover, rural residents' consumption plays a pivotal role in this relationship. Governments should therefore encourage more non-farm jobs, stimulate domestic demand and use rural consumption as a key growth catalyst, especially after the demographic dividend disappears. It is also important to take into account regional nuances in policy formulation and make adjustments to cater for these differences to prevent any potential imbalances.

Spatial segregation and human capital of impoverished areas in China: Implications for livelihood resilience building

Improving people’s livelihood resilience against risks and challenges plays an important role in consolidating the achievements of poverty reduction. The paper uses 64 poverty-stricken counties in China’s Sichuan province as the study area and explores the link between spatial segregation and human capital. The results show that the proximity (spatial segregation) is significantly and negatively associated with people’s educational attainment and their acquisition of non-farming employment. Residents in villages which are distant from the county center tend to obtain less educational opportunities and are less likely to engage in non-farming jobs than those who are close to the county center. The mediating effect analysis indicates that remoteness mainly reduces the propensity of getting non-farming jobs by reducing the human capital of rural residents. Further analysis shows that the association between proximity, human capital and the probability of acquiring non-farming work is higher in areas with lower economic level and less developed transportation infrastructure. Policy implications for improving people’s livelihood resilience in impoverished areas are proposed in the paper.

The Expanding Search for Work: The Gender Gap in Livelihood Choices among the Rural Chinese, from 1989 to 2015☆

AbstractSimilar to the rest of developing countries around the world, rural China has experienced rapid growth in the diversification and space expansion of their livelihood choices. However, little is known about the gender gap in the process of expanding. In this study, using the China Health and Nutrition Survey data from 1989 to 2015 and multilevel age, period, and cohort models, we examine the gender gap in livelihood choices of farming, local nonfarm, and distant nonfarming among rural residents over the period. Our study showed that women are constantly behind in taking nonfarming jobs compared with men, and there is no evidence of a convergence trend over time. Further analysis suggests that the family status of being married is the main obstacle for women to close the gap with men, while the gap between unmarried women and men has closed. When comparing the local vs. nonlocal nonfarming work, we found that the gender gap was resistant to close and has even slightly enlarged between married men and women over time. Our study has revealed a concerning trend for rural married women to close the gender gap in pursuing nonfarming occupations and expanding their space in livelihood choice in China.

Factors influencing farmer intentions to scale up organic rice farming: preliminary findings from the context of agricultural production in Central Vietnam

The Vietnamese government encourages organic farming (OF) as a move toward safer and more eco-friendly agricultural practices. To achieve the goal of popularizing OF, besides encouraging the participation of newcomers, the government should also focus on farmers already involved because their production decisions are the most effective means for communication. By blending quantitative and qualitative approaches, this study investigated smallholder farmer intentions to scale up organic rice farming (ORF). Data were obtained through direct interviews with 325 farmers in the Phu Vang, Phong Dien and Huong Thuy Districts of Thua Thien Hue Province, Central Vietnam. The results revealed the ineffectiveness in demographic characteristics, including gender, age, education, number of laborers, OF experience, percentage of organic rice area, non-farm jobs and involvement in community-based organizations to predict farmer intentions to expand ORF. The findings highlighted the more significant influence of factors related to economic outcomes, farmer awareness of OF, and their confidence in the market outlook. We recommend policies and interventions associated with promoting the advantages of organic agriculture, intensifying technical training, linking production with the market following the value chain model, equipping the market with information, diversifying support and timely undertaking of issued policies.

Harnessing Demographic Dividend Before it is Lost Forever in India.

Based on the secondary data taken from Population Census, and the Employment-Unemployment Surveys and Periodic Labour Force Survey of the National Sample Survey, it is found that Indian economy is passing through a critical phase of economic development in which it is likely to lose its demographic advantage. Because, in India while about 4.5 million people wereleaving agriculture every year prior to the Covid-19 pandemic years, the non-farm sectors job was not growing adequately to accommodate the persons leaving agriculture, and the newly educated non-farm job seekers. As a result there was an upsurge in educated youth unemployment (18% and about 24 million) rate, and hence the discouraged youth labour force. On the other hand, an increase in the share (from 8.0 to 10.2%) and growth (3.0-5.1%) of elderly population put a question on the process of harnessing demographic dividend in India. Based on these findings it is argued that an integrated approach of development is necessary to boost the labour force participation of youth and overall population to boost the growth of per capita national state domestic product (NSDP) in Indian states. This could be achieved through the promotion of micro and small enterprises along with infrastructure development along with a systematic emigration and remittances policy.

Assessing inverse relationship in joint farm decision-making households: An empirical evidence from Eastern India

In the eastern India region, due to the dominance of fragmented and smaller land holdings and lack of irrigation facilities, the adoption of green revolution technologies has progressed slowly. Economic growth, income, and land fragmentation have induced families to allocate labor to non-farm jobs. In the absence of male decision-makers, spouses are responsible for making farming-related decisions jointly with their husbands. This study examines the inverse relationship between farm size and rice productivity in joint farm decision-making among married couples. The study uses survey data from four eastern states of India. The finding confirms the inverse relationship between cultivated rice area and rice yields. The inverse relationship holds but weakens when we control for farm and household characteristics and land quality. Smallholders in India tend to have dual employment, and as a result, more farm management decisions are being made jointly with spouses. Findings indicate that joint farming decision-making may have an adverse effect on rice productivity. Socially advantaged farmers have a lower yield. Finally, the study reveals that off-farm income from off-farm employment increases rice productivity. Policymakers can strengthen extension services to disseminate farming knowledge (agronomic practices and technology) to socially disadvantaged farmers and off-farm job opportunities for smallholders.

Model Citizens in Bangladesh

Abstract Recently dubbed the new ‘Asian Tiger’, Bangladesh developed a post-independence citizen-centered economic strategy that included generating non-farm jobs and constituting a new type of model or ideal citizen: the independent, prosperous, and entrepreneurial woman. Based on ethnographic fieldwork in Dhaka, in this article I document the model citizen campaigns by analyzing female ready-made garment factory workers’ lives. I also outline the form that egalitarianism assumed in this context. I argue that through investigating the emergence of joggo nari—women who challenge gendered norms and hierarchies, aspire toward forms of gender equality, and represent new women of a new Bangladesh—central paradoxes of egalitarian dynamics, such as contradictory and multi-layered gendered relationships and expressions of personhood, desire, and freedom, may come into view.

The Impact of Digital Technology on Land Rent-Out Behavior: Information Sharing or Exclusion?

In the digital age, it is critical to understand the nexus between digital technology (DT) and land rent-out behavior (LRB). It has implications for reducing the rate of land abandonment to achieve sustainable agricultural development. A large dataset (n = 5233) dating from 2016 and coming from the China Family Panel Studies (CFPS) is used to explore the impact of DT on LRB by applying several econometric models, also including the “Recursive Bivariate Probit (RBP) model” and “Chain Multiple Mediation effect (CMM) model”. We provide empirical evidence that the DT’s information sharing effect positively impacted LRB, while an opposite effect is observed by the “digital divide (DT_GAP)” i.e., information exclusion that negatively impacted LRB. We further test the effect of two other variables, namely “digital information dependence” and “non-farm jobs” supposed as mediating factors of DT and DT_GAP in influencing LRB, respectively in a positive and negative way. In particular, the variable “nonfarm jobs” plays a mediating role conditional on the variable “digital information dependence” as a mediating variable at the first level. In addition, statistical tests reveal that the impact of DT and the DT_GAP on LRB is not significant in terms of regional preferences but is significant in terms of age of householder and household income level.

Out-of-sample predictability of gold market volatility: The role of US Nonfarm Payroll

In this study, we make a three-fold contribution to the literature on gold market analysis. First, we provide evidence for the predictive value of US Nonfarm Payroll (USNP) in the out-of-sample forecast of gold market volatility. Second, we extend our analysis to other precious metals and the US stock market index for robustness purposes. Third, we utilize mixed data frequencies based on the availability of data, thus, circumventing any bias or information loss due to the use of monthly (low frequency) USNP data and daily (high frequency) gold price data. The results show that the USNP, which reflects gain/loss in US non-farm jobs, is negatively related to gold return volatility, implying that deterioration (improvement) in the economy due to job losses (gains) raises (lowers) the gold market volatility as its trading improves (deteriorates) while the reverse is the case for US stocks. The out-of-sample predictive value of USNP in the return volatility of gold is also established as the model which includes the former offers better out-of-sample forecast gains than the benchmark model which ignores it. Additional analyses involving other precious metals, namely palladium, platinum, rhodium, and silver, show the same direction of relationship as gold, albeit with higher forecast gains for silver than the others. Our findings have useful implications for financial analysts and investors.

Reducing Rural Poverty Through Non-farm Job Creation in India.

Based on secondary data, this paper estimates the incidence of poverty by sectoral employment status of individuals and it explores the factors determining individual’s joint probabilities of being poor and being engaged in the non-farm sector jobs (at micro-level). It also finds the impact (at macro-level) of rural non-farm sector employment on the incidence of rural poverty, and it identifies the subsectors of the non-farm sector, which help reduce the incidence of rural poverty in India. Using bivariate probit, recursive bivariate probit regression models, it finds that individual’s human capabilities owing to better education and training and higher occupations of their head of the family significantly determine their probability of being employed in the non-farm sectors, which in turn help reduce their chance of being poor. The panel system generalized methods of moment result suggest that the provincial states of India, which have achieved higher level of non-farm sector NSDP growth along with the creation of jobs through an improved level of infrastructure (roads, railways, banking, and industries) base, have succeeded to reduce the incidence of rural poverty to substantially low levels. Based on these findings, it is argued that the incidence of rural poverty can be reduced on a sustainable basis through the development of rural manufacturing, and by promoting growth of modern service sectors like education, health, communication, real estate, and finance and insurance, along with the infrastructural development.

Farm Parent and Youth Aspirations on the Generational Succession of Farming: Evidence From South India

Agriculture remains vital in ensuring the food security of developing economies like India, yet increasing rural-urban migration, an aging farm population, and waning interest of rural youth in agriculture are emerging concerns. This paper focuses on the aspirations of farm parents and their children in agriculture, the challenges they confront, and potential solutions. We draw on qualitative data from two rural sites in Southern India, different from each other in their agro-ecological and social contexts, to point to the material, social, relational, and structural factors shaping aspirations. First, agrarian distress, resulting from climate variability and market uncertainty, affects farm households' socioeconomic status, resulting in farmers' aspiration failure in agriculture. Farm parents then focus on educating their children, aspiring for secure non-farm jobs for their sons, and finding suitable marriage partners, also in non-farm employment, for their daughters. While this steer from parents discourages youth from aspiring to careers in agriculture, in reality, there is a wide gap in the achievement of aspirations, and a majority of youth, especially young women, do end up working on their family farms. For the future development of agriculture and sustainable food systems, it is essential to protect young farmers from aspiration failures and innovate through appropriate policies.

Impact of Awash irrigation on the welfare of smallholder farmers in Eastern Ethiopia

Ethiopia’s agriculture is dominated by small-scale rain-fed production in combinations of natural and manmade factors have resulted in serious poverty. Irrigation farming is increasing been used as a strategy in Ethiopia. However, lack of consensus on the role of the irrigation sector on the welfare of smallholder farmers and pitfalls in impact study methodologies resulted in mixed findings. This study evaluated the impact of Awash irrigation on the welfare of rural smallholder farmers. Two-stage stratified sampling technique employed to select sample households. Cross-sectional household level data from a survey of 315; 165 irrigation users and 151 non-users smallholder farmers in Asiyta district, Ethiopia used for the analysis. This study employed endogenous switching regression model to control for endogeneity problems associated with adoption decision. Accordingly, the correlation coefficient result proved that the existence of self-selection and endogeneity. Results indicated, irrigation users’ per capita consumption expenditure and income were 16 percent and 35 percent, respectively, higher compared to non-irrigation-users significantly. Endogenous switching regression model further identified amount of own land cultivated, education status, number of extension contact, livestock holding, nearest market distance, access to non-farm job and nearest canal distance significantly determine irrigation participation. The study concluded that Awash irrigation is one of the viable solutions to improve the welfare of smallholder farmers in the study area. Therefore, governmental and non-governmental organization should promote, improve and expand Awash irrigation in all areas of the Woreda in particular and irrigation agriculture in general. Impact of Awash irrigation on the welfare of smallholder farmers in Eastern EthiopiaAll authorsDagninet Asrat , Adugnaw Anteneh, Mohammed Adem & Zewdu Berhaniehttps://doi.org/10.1080/23322039.2021.2024722Published online:16 January 2022Figure 1. Conceptual framework for determinants of irrigation participation.Source: Modified from Mengistie and Kidane (2016)Display full sizeFigure 1. Conceptual framework for determinants of irrigation participation.Source: Modified from Mengistie and Kidane (2016)

The influence of contextual and household factors on multidimensional poverty in rural Vietnam: A multilevel regression analysis

Using a multilevel regression modeling technique, this paper examines the influence of contextual and household factors on multidimensional poverty in rural Vietnam. We find that unobservable characteristics at the province, district and commune levels account for about 28% and 25%, respectively, of the variation in multidimensional and income poverty risk. In addition, the study shows that several micro-factors, such as ethnicity, better education, social capital, nonfarm activities and public employment, play a key role in reducing both the likelihood of falling into poverty and the number of dimensions of deprivation. The risk of poverty is higher for households in remote communes and lower for those in communes with access to transportation and nonfarm jobs. At the macro-level, it was found that living in provinces with a higher level of economic development, greater population density, and more international integration increases the chances of households to escape both multidimensional and income poverty.

Non-Farm Activities and Impacts beyond the Economy of Rural Households in Vietnam: A Review and Link to Policies

Rural households in Asian developing countries such as Vietnam have been participating in non-farm activities for decades, yet impacts beyond the economy of these households are little understood. Using evidence from available literature and two case studies from rural Vietnam, this paper exposes a range of socio-cultural impacts of non-farm activities. An increased social tension driven by a widening economic gap between poor and better-off households or ethnic majority and minority groups was the most frequently reported impact in the literature. The case studies reveal additional impacts, notably those associated with public security, preservation of local culture, and safety of farm households with migrants during and following climate-related disasters. An increasing number of young migrants who exited family farms to access non-farm jobs partially led to the latter two impacts. The rural development and poverty reduction policies of Vietnam enacted in the past two decades (2000–2020) that promoted livelihood diversification had limited measures addressing socio-cultural impacts of non-farm activities. An amendment of these two categories of policies for the implementation beyond 2020 or a strengthened synergy in implementation with other categories of policy such as social policies is necessary to ensure sustainable rural development in Vietnam.

Features and Socio-Economic Sustainability of Traditional Chestnut Forestry Landscape in China: A Case of Kuancheng County, Hebei Province

Since Important Agricultural Heritage Systems (IAHS) were launched by the FAO to protect the sustainable traditional agricultural systems around the world, their conservation has become a new difficult issue under the context of urbanization. Farmers in IAHS sites giving up small-scale traditional farming due to their low economic benefit and high labor intensity are considered as the main cause hindering effective conservation of these heritages. This study takes the Kuancheng traditional chestnut cultivation system (KTCCS) in northern China as a case to assess its economic and socio-cultural sustainability. Based on questionnaires and interviews, this study found that: the traditional ecological farming methods were still used by local farming households to plant chestnut trees; and most farmers support IAHS conservation. KTCCS performs economic and socio-cultural sustainability. For a household, the labor productivity of chestnut cultivation was 1.33 times that of their non-farm jobs because of the low labor input of chestnut cultivation. Farmers widely consider they live in a harmonious social environment but are lower than other households in economic status. Most farmers still lack an understanding of indigenous traditional knowledge and cultures. In the future, secondary and tertiary industries should be developed to provide farmers with employment opportunities in their hometowns for protecting KTCCS.

Analysis of clans and employment in China from the aspect of gender

AbstractA clan is a group of families that are linked by patriarchal blood relationships with one common ancestor. Clans may help members to find jobs and set up businesses through blood‐based networks, but traditional male‐biased norms may lead to different effects on employment between genders. This paper examines the causal effects of clans on the employment statuses of men and women and the gap in the effects between genders. To mitigate the endogeneity issue, we employ the potential rain‐fed rice yield as an instrumental variable to obtain consistent estimates. We find that clans have positive effects on women's probabilities of participating in the labor market and having nonfarming jobs, while the effects on men are not significant. Clans have positive effects on male entrepreneurship but no effects on female entrepreneurship. The results are robust to a host of sensitivity tests. Moreover, we find that the findings are driven mainly by small cities, and clans have larger effects on regions where private enterprises dominate. The dynamic analysis indicates that the gender gap of clan effects decreases with the development of urbanization and marketization.