Non-farm Sector Research Articles

Household residential energy choices in green transition: insights from a household survey in rural China.

It has been widely recognized that accelerating green residential energy transition from traditional solid fuels (biomass and coal) to clean and high-efficient energy sources is critical for rural sustainable development. However, little attention has been paid to estimate panel data discrete choice models to analyze the dynamic behavior information of individual households in the process of energy transition. Hence, this paper investigates green residential energy transition using a panel dataset from 3308 rural households in eight provinces of China in 2015 and 2018. The results show that although traditional solid biomass still plays a dominating role in rural residential energy choice, fuel switching from solid fuels to modern clean energy alternatives is taking place. Off-farm employment plays an important role in the transition towards more sustainable energy sources, as households with off-farm employed heads and higher off-farm income level are highly likely to choose superior energy alternatives other than traditional biomass. Besides, the educational level of the household head and household location are also important influencing factors of household residential energy choices. Based on these findings, this paper suggests that job creation in non-farm sectors should be given a priority in future policy design to promote rural green energy transition in residential sector. North-south differences should be taken into account, whereas more policy options for optimizing biomass energy use should be explored.

Participation in artisanal diamond mining and food security: A case study of Kasai Oriental in DR Congo

Abstract The high prevalence of food insecurity and malnutrition in Kasai Oriental, Democratic Republic of the Congo, prompted an investigation into the complex relationship between household livelihood activities and food security. Despite many rural households relying on subsistence farming, this alone may not ensure improved food security in Kasai Oriental. Consequently, non-farm sectors like artisanal mining offer a potential solution to address food insecurity among rural households. The aim of this study is to explore the association between engagement in artisanal diamond mining, food insecurity, and children’s nutritional status in Kasai Oriental. The research utilizes household cross-sectional data collected between November and December 2022. Fixed effects and Instrumental variable models were employed to address household heterogeneity and potential endogeneity related to participation in artisanal diamond activities. The regression results reveal a significant relationship between participation in artisanal diamond mining and food security. This implies that participation increases households’ cash, enabling them to access sufficient food and potentially mitigating the risk of falling into food insecurity. However, involvement in artisanal mining has not shown a significant association with children’s malnutrition. These findings call for further research on “hidden hunger.” Policies aiming to encourage and formalize artisanal diamond mining should integrate specific extension services and inform rural households about hidden hunger.

Does non-farm employment influence a farmer’s decision to adopt hybrid rice seeds or improved variety?

Purpose. The study aims to examine the effect of non-farm employment decisions on the adoption decision of rice hybrid seeds or improved variety in Vietnam. Methodology / approach. This study uses panel data from the Vietnam Access to Resources Household Survey (VARHS) 2008–2016 dataset. The study uses the correlated random effect Probit model with the Mundlak approach to control unobserved heterogeneity of panel data and the endogenous switching Probit model (ESPM) to solve the endogeneity problem and self-selection of the non-farm participation variable. Results. There has been increasing interest that the development of rural non-farm employment has effects on agricultural production as well as agricultural growth. However, still relatively poor understanding of how non-farm participation affects the farmers’ decision to adopt modern technologies in the face of market failure. Our findings indicate that non-farm employment has a positive effect on the adoption of rice hybrid seeds or improved varieties in Vietnam. The value ATT is predicted from the endogenous switching Probit model, which implies that farm households who engage in non-farm employment had a 35.1 % of probability of modern varieties adoption, vs. 19.0 % in the sample overall. Originality / scientific novelty. This study adds evidence from a developing country (using the example of Vietnam) to the broader literature on the role of non-farm employment participation on farmers’ adoption behaviour under market imperfections. In addition, the research addresses the limitations of unobserved heterogeneity of an unbalanced panel by applying the Mundlak approach and contributes to the literature by controlling the endogenous problem and self-selection problem of non-farm participation by using the endogenous switching Probit model. Practical value / implications. Based on the empirical results of this paper, some policy implications are provided to develop the rural non-farm sector and to diffuse modern technologies among rural farmers.

Youth and Service Work in Fast Food Restaurants: Some Structural and Cultural Considerations

The India Employment Report (2024) highlights the problem of youth unemployment and its insufficient absorption in the non-farm sectors and recommends the skilling of youth as a remedy for tardy economic growth and employability. In view of the proposed solution, I suggest that we inquire into the nature and conditions of non-farm work in alternative sectors and the experience of this work for young people. The issue is the adequacy of training and skilling as sole measures to counter insufficient absorption. My concern regarding the recommended solution is a short shrift it gives to structural and cultural factors as facilitators or barriers to absorption, and the retention of workers. This article is an inquiry into the organization and culture of service work in fast food industry– a non-farm sector–under conditions of globalization. The experience of service workers reveals the relation between service work and attitudes towards cleaning, meaning of toilet cleaning, gendered division of labour, hierarchy of tasks, ascriptive and unequal access to jobs, and dignity of labour. The experience of service work is not the same for girls and boys; it is fraught with different sorts of tensions for them. These insights question the efficacy of training and skilling as the talismanic measures for countering the problems under consideration. They make a strong case for the consideration of cultural and structural realities of India.

Effect of Non-Farm Income on Income Inequality in Pakistan

The portion of farm households' income outside the farm, such as non-farm salaries and wages, pensions, and interest income, is referred to as non-farm income. In Pakistan, non-farm profit is an essential source of income. "income inequality" describes the inequitable income distribution between people or families in a community or economy. Income inequality is a significant issue worldwide, including in Pakistan. This research estimated the effect of non-farm income on rural and urban areas and analyzed the relationship between non-farm income and income inequality within households. Secondary data from the Pakistan Social and Living Standard Measurement Survey Household data (2019-20) was used. Multinomial Logistic Regression was applied to the data, and income inequality was calculated using the Gini coefficient. The population was divided into quartiles to measure income distribution. The research found that non-farm income raises income inequality, while farm income is an income equalizer among the population. The reason behind this is that a major portion of income or wealth is accessed by the upper society, with only a minor portion reaching the lower levels of the population. Specifically, the Gini coefficient for non-farm income was 0.65, indicating higher inequality, compared to 0.45 for farm income. In urban areas, non-farm income provides large opportunities, while rural areas predominantly depend on the farm sector. There is a need to raise awareness about the non-farm sector in rural sector. The study's policy implications include the following: In order to improve agricultural households' income and low-income disparity, non-farm income activities have to be promoted. The study also suggests that Inequalities within rural communities should be addressed as part of an equal development strategy, in addition to the rural-urban gap.

Time poverty and women's participation in non-farm work: Evidence from rural Ethiopia

In most developing countries, rural women are still marginalized in many domains to work in the non-farm economy, partly because the persistent unequal division of domestic burdens leaves rural women time-constrained. Yet, time poverty has received little consideration in the context of women's participation in non-farm work. This study presents evidence on the effect of time poverty on rural women's participation in non-farm work based on cross-sectional data collected from 300 rural women. We use two-stage residual inclusion instrumental variable (2SRI-IV) and recursive bivariate probit methods to address potential endogeneity. We find that time poverty is prevalent with 6 out of 10 women having insufficient time for non-farm work. The empirical results indicate that time poverty reduces women's participation in non-farm work in rural Ethiopia. This study suggests that relaxing women's time constraints coupled with meaningful rural education and infrastructure access might be vital in spurring their participation in the non-farm sector.

Gender Employment Disparities in the Rural Non-farm Sector in India

Gender Employment Disparities in the Rural Non-farm Sector in India

Bibliometric Analysis on Rural Non-farm Sector: Study on Scopus Database During 1990-2022

The rural non-farm sector is increasingly playing an essential role in the development of rural areas around the world. Specifically, as agriculture in the region's contribution to the economy declines, the rural non-farm sector will need to increasingly become a significant provider of employment and income to many rural people. However, rural non-farm employment is not a substitute for employment in agriculture but rather an additional measure. Promoting the rural non-farm sector should be undertaken within the border context of rural development. Bibliometric analysis is a rare contribution to the field of Rural Non-Farm research. Therefore, a bibliometric analysis of the publications may provide a direction for future research and a detailed topic analysis. The global literature about Rural Non-Farm published between 1990 and 2022 was scanned from the Scopus database. The keywords used to get the relevant publications are given as "Rural" AND "Non-Farm" in the search criteria "Article Title, Abstract, Keyword". A total of 1135 papers were chosen for this study to conduct bibliometric analysis. VOSviewer is used to carry out the bibliometric analysis. VOS viewer software was used to create maps based on network data of scientific publications displaying relationships among researchers, countries, and scientific journals. Author keywords are used to explore the co-occurrence of different terms connected to rural non-farm research. Results reveal close and robust interconnections between the top authors, suggesting a solid research link. "Poverty", "Agriculture" "Rural Development", and "non-farm employment" are the keywords the authors most repeatedly use. "World Development" Journal has the highest number of citations (2607) with a total link strength of 172. The United States and India have the highest number of articles in the Rural Non-Farm Sector. This study on Rural Non-Farm would help future researchers gain significant insights into the current status of existing literature and assist in conducting a qualitative literature review.

Vocational education, skill training and self-employment: evidence from India’s non-farm sector

ABSTRACT Does vocational education and skill training induce self-employment remains a significant open policy question in India. A connected question is how workers from different socioeconomic, demographic and educational settings relate their vocational education and skill training with employment type. In this paper, using nationally representative household survey data, we investigate how vocational education and skill training are associated with the uptake of self-employment activities (vis-à-vis wage employment opportunities) in the non-farm sector in India. This paper shows that individuals with vocational training are more likely to engage in self-employment activities than those with wage employment in the non-farm sector in India, with stark socioeconomic and demographic differences. Our results suggest significant gender and caste inequalities in self-employment based on their vocational education and skill training status. We also find some evidence suggesting that youth with vocational training opt for wage employment vis-à-vis self-employment than their older counterparts. Examining socioeconomic and demographic complexities in connecting vocational education and skill training with self-employment in this study aligns with the recent education and labour market policy of the Indian government.

The impact of integrated agricultural water pricing reform on farmers' income in China

Given its status as the largest water-using sector, it remains pivotal to enhance the water usage efficiency within the agricultural sector to safeguard water resources. The main goal of the Integrated Agricultural Water Pricing Reform (IAWPR) is to encourage water conservation and foster sustainable agricultural development. Nonetheless, achieving sustainable progress in agriculture necessitates a dual focus: not only on the sustainable exploitation of resources but also on upholding the welfare of the population. The impact of the policy on farmers' welfare is not straightforward and requires scientific verification. To this end, the study focuses on the new relationship between IAWPR and farmers' income, exploring its underlying mechanism to broaden the economic benefits of IAWPR. In addition, combining multi-phase Difference-in-Differences (DID) and biennial Malmquist-Luenberger (BML) productivity index overcomes the limitations of traditional measurement methods. The results indicate that the IAWPR has a significant positive impact on farmers, leading to a 31.9% increase in income, and the impact is even more pronounced in the non-farm sector. Furthermore, the IAWPR primarily operates through enhancing agricultural green total factor productivity (AGTFP), where technological change (TC) serves as the principal driving factor of improvements in agricultural efficiency.

Agricultural mechanization and the performance of the local Chinese economy

In this study, we analyze the impact of agricultural mechanization on the local Chinese economy from 2010 to 2020. Findings based on panel data and instrumental variable methods show that agricultural mechanization led to a significant decline in the local gross domestic product. In particular, agricultural mechanization changes the sector’s production and lowers its output value. Agricultural mechanization has reduced the need for labor to such an extent that young Chinese tend to seek jobs in the non-farming sector, leading to a fall in the local agricultural labor supply and household consumption, adversely affecting the development of local industries and service sectors. Mechanization has also led to cash crops being increasingly replaced by grain crops, reducing the total agricultural output. Finally, this paper presents some policy suggestions for agricultural production and rural development.

ANALISIS KEBERAGAMAN USAHA RUMAHTANGGA PETANI PADI SAWAH LEBAK DI PINGGIRAN KOTA PALEMBANG

Livelihood strategies are various alternative efforts carried out by households to fulfill living needs for sustainable livelihoods. Through the livelihoods approach, we can understand how people/communities create a livelihood, and how they try to survive. The lives of lowland rice farmers on the outskirts of Palembang City are inseparable from the problem of the water regime conditions of the lowlands with all the impacts it causes as well as social and economic aspects and resource aspects (land conversion) from agriculture to residential and housing land. This research aims to 1) analyze the level of business diversity of farmer households, 2) calculate the amount of income of lowland rice farmer households from the on farm, off farm and non farm sectors. 3) distribute the contribution of various incomes from the off-farm and non-farm sectors to the household income of lowland rice farmers on the outskirts of Palembang City. The data used and the analysis carried out used a combination of primary survey data and qualitative data from the results of in-depth interviews with a sample of 32 families. The results of the research show that the diversity of household businesses of lebak farmers on the outskirts of Palembang City, with the calculation of the entropy index, obtained a value of 0.73. This shows that the efforts made by household members are very good. diverse. The average income from rice farming is Rp. 16,168,113.32 /lg/yr and its contribution to the household is moderate (54.96%), the average non-rice farming income is Rp. 4,319,548.42/year with its contribution to households in the low criteria category (14.68%), and the average non-farming income is IDR. 8,928,750.00/year and its contribution to households in the medium criteria category (30.35%).

Personal Earnings in Pakistan: Role of Information Communication Technology (ICT) and Livelihood Diversification

The determination of factors explaining personal earnings has remained a matter of great interest among economists. This study explores important socioeconomic and demographic factors affecting personal earnings in Pakistan with a special focus on the contribution of ICT usage and livelihood diversification. Ordinary Least Squares (OLS) regression models have been estimated using the most recent available PSLM (2019-20) data published by the Pakistan Bureau of Statistics (PBS). After careful screening, the data has been restricted to only those individuals who earn either through farm, non-farm, or diversified livelihoods. The results suggest that the use of ICTs has a significant contribution to the earnings in Pakistan. Similarly, livelihood diversification i.e., participating in both farm and non-farm employment activities can greatly improve personal earnings. The non-farm sector also remarkably supports the agriculture-based Pakistan’s economy. Especially, the small landholders have to inevitably search for additional livelihood sources as risk coping strategy. Education is found one of the most important determinants of personal earnings. It is suggested that measures should be taken to improve access to ICTs and internet facilities at the national level with a special focus on the most backward areas. Moreover, the government may acknowledge and support the livelihood diversification strategies as a component of the national objective for job creation. Stringent efforts are recommended to ensure the provision of free and quality education for all with equal opportunities.

Subsidy-Dominated Non-Farm Income Improves Herder Household Livelihoods and Promotes Income Equality in North Tibet, China

The non-farm sector is critical in supporting sustainable economies, alleviating poverty, and improving human well-being. However, the drivers of non-farm income and how it impacts income inequality remain underexplored, especially in alpine regions worldwide. Herein, we conducted face-to-face interviews using semi-structured questionnaires with 665 herder households across 54 villages in North Tibet from 2018 to 2020. We assessed the role of non-farm income in household economies and explored the determinants of household income using basic statistical methods, Gini coefficient analysis, and mixed-effects modeling. Our results showed that non-farm income accounted for approximately 80% of the total household income. It contributed to lower income inequality in rural North Tibet, with government subsidies playing a more vital role than wages and business income in this reduction. Results indicated that the number of migrant workers was the most significant positive predictor of both non-farm income and total household income, whereas livestock units dominated farm income. Given the modest contributions of livestock-derived income (~5%) and wage and business revenues (~18%) to overall earnings, this study suggests that policies should primarily focus on strengthening rural livestock husbandry. Simultaneously, it is imperative to foster environments that encourage entrepreneurship and non-farm activities and to expand access to skill-based training. Such initiatives and measures are essential for diversifying livelihood strategies and improving resident welfare in North Tibet.

Occupational Structure of Population in the Malaprabha River Basin, Karnataka State, India; A Geographical Approach

Changes in the size, composition, and distribution of the population are closely associated with the demographic structure of the workforce. On the other hand, the workforce participation rates vary according to the stages of economic development, across cultures, age groups, and between sexes (R. B. Bhagat and K. C. Das, 2008). It is an indicator of a growing society (Pant, 1992). Thus, occupational structure is the most important demographic aspect in explaining the economic well-being structure of the inhabitantsof the region. The occupational structure, in turn, is influenced by the participation rates and related features, such as the growth and levels of farm and rural non-farm activities. An attempt is made in this study to examine the emerging trends in the occupational structure of the population in the Malaprabha River Basin area from 1971 to 2011. More specifically, the spatio-temporal analysis of the work participation rates in total and farm sectors among males and females in the talukas of the study area This study is based upon secondary sources of data, and though the study area is a natural region, the talukas or tehsils have been taken as units of study. The findings suggest that there are undoubtedly significant changes in work participation rates between farm and non-farm sectors and between males and females in the study area. To overcome this context, some developmental policies such as youth employment is one of the prime focus areas of SHGs. This can bring prosperity to workers in far-off rural areas.

Drivers of Rural Non-farm Sector Employment in India, 1983–2019

Using the national-level employment and unemployment surveys (NSS and PLFS) and the macro-level data for the period 2005–2019, this article explores the trends and recent growth patterns of rural non-farm sector employment in India. It also examines the micro-level factors determining individuals’ preference towards non-farm sector jobs and the macro-level factors responsible for the growth of non-farm sector employment in rural India. The main findings of the study suggest that although rural non-farm sector employment is rising in absolute terms, its growth rate has slackened in recent years. While the level of education and skill training, market wage rates and socio-cultural setups are among the key micro-level factors determining farm–non-farm employment choices of rural folks, at the macro-level, the growth of investment in capital goods, the number of factories, investment in infrastructure development and the growth of the manufacturing sector are crucial for the growth of non-farm sector jobs in India. Based on these findings, it is argued that the improvement of human capabilities through increased investment in education and skill, and the growth of non-farm sector employment through the development of rural infrastructure and industrialization measures, are necessary to sustain the structural transformation and to harness the demographic dividend in India. JEL Codes: J01, J21, J43, J64

Guest editorial: Introduction to the special issue on productive employment in rural farm and non-farm sectors in sub-Saharan Africa

Guest editorial: Introduction to the special issue on productive employment in rural farm and non-farm sectors in sub-Saharan Africa

Caste Wise Earning Discrimination among Rural Non-farm Sector Workers in India

This study investigates wage discrimination among non-farm workers, including both regular and casual workers, in rural India between the forward caste (FC) and backward caste (BC). Using data from NSSO unit-level employment and unemployment surveys from 2004–2005 and 2011–2012, as well as periodic labour force surveys from 2017–2018 to 2019–2020, the study found that the wage differential between FC and BC non-farm employees increased over time, with BC workers being paid less than FC workers. To determine the factors contributing to the wage difference, a linear regression model was used, and the decomposition method was employed to examine whether the difference was due to endowment or discrimination effects. Overall, the study highlights the persistence of caste-based wage discrimination in rural non-farm employment in India. For the betterment of BC workers and to reduce discrimination, the policies and programmes which are implemented by the government need to be revived.

Transition from Agriculture to Non-Agriculture Occupations in West Bengal, India: Causes and Way Forward

This empirical study reveals that agriculture in West Bengal, a major state in India, is nonviable as a primary source of occupation for most agricultural households who have been distressed to diversify to the nonfarm sector. However, the underdeveloped rural nonfarm sector does not leave enough economic space for the distressed farmers to have a smooth and remunerative transition from agricultural to nonagricultural employment. Therefore, most farmers end up clinging precariously to the agriculture sector while engaging in nonremunerative activities in the rural nonfarm sector for sustenance. This article identifies several statistically significant drivers of employment diversification through a logit model and revisited the age-old farm-size agricultural productivity debate in India to conclude that agricultural production is not scale-neutral. Therefore, to make agriculture viable and sustainable, the average operational landholdings need to increase through reverse tenancy and/or cooperative farming and through creating gainful employment opportunities in the rural nonfarm sector. This will help farm-dependent, semi-marginal, and marginal agricultural households to transition from agricultural to nonagricultural occupations.

Changing Employment Patterns: An Analysis of Rural Labour Force in Punjab

The story of Punjab’s economic development witnessed an asymmetrical shift in the structure of output and employment due to the intensive capitalistic model of production in agriculture. The present study, based on National Sample Survey Office data, examines the patterns of employment and output in rural economy of Punjab during the pre-reform and post-reform period. Rural Punjab witnessed fall of work participation rate and phenomenon of ‘defeminisation’ of the labour force in agriculture during the post-reform period. There is a paradigm shift as the share of non-agriculture employment increased to 59.3% as per Periodic Labour Force Survey 2018; consequently, the non-agriculture sector becomes a major driving force in the state economy. An increase in employment elasticity among all sectors (except construction sector) during the post-reform period is a good sign. But a substantial decline in employment elasticity for all the sectors (except the construction sector) of Punjab is a disquieting phenomenon during the study period. Amidst the agrarian crisis, the rural non-farm sector can emerge as a silver lining, but evangelists of market economy disregarded the rural non-farm sector. Hence, the state should abdicate its neoliberal policies and adopt post-Washington consensus for the development of the rural non-farm sector within a given mode of production. JEL Codes: E24, J16, J43, J46, O11