Rural Non-farm Sector Research Articles

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.

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.

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

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

Pattern of Employment in Rural Non-Farm Sector of Punjab

Historical perceptive clearly shows the agriculture cannot absorb all the growth of the rural workforce but the imperative role of non-agricultural activities recognized recently. Majority of the rural workforce is giving up farming and moving to the non-agricultural sector in rural areas. A change in the structure of jobs in rural areas is a prerequisite for the process of rural transformation. Kerala remained at the top around 73 %, while Punjab exhibited second position at rural non-farm sector (RNFS) with a labor force of 46.36% in 2011. Intergenerational Change in Occupation is noted as per the present study, as nearly 90% respondents experienced change of occupations from father to respondents. Reliance on RNFS by rural families was significantly higher in the developed region compared to the developing or backward region.

Socio-economic Profile of Labour and Owners of Enterprises: A Case Study from Rural Non-farm Sector of Punjab

In the non-farm sector people are employed in two ways, either they work as laborers in rural enterprises or they have their own rural enterprises. Around 8.6% people are illiterate, 27% have completed primary education, 33.3% have completed Matriculation examination(10th), 17.9% have completed secondary education(S Sec) , 12.1% are graduates and 1.2% are above graduates. Majority of schedule caste workers are engaged in activities like Aaganwadi and Asha worker, Auto-mobile repair, Brick Kiln worker, casual worker, domestic worker, factory labour and religious work. On the other hand, general category workers are engaged in activities like Govt. Job Regular, Medicine, and shop labour. On the other hand either OBC workers are engaged in traditional activities like carpenter and workshop labour or as drivers and in shops As per our analysis, less than 2% people have dependency ratio of 1 person, 49.1% respondents have dependency ratio of between 1 to 3 persons, and 42.6%respondents have dependency ratio of 3 to 5 persons and 7% people have dependency ratio of above 5 persons.

The Slow Emergence of Rural Non-farm Sector Employment in India: Shift or Diversification?

The Slow Emergence of Rural Non-farm Sector Employment in India: Shift or Diversification?

Rural Non-farm Sector Employment in the North-Eastern Region of India: Determinants and Implications for Well-being

The article analyses the causal relationship between rural non-farm employment (RNFE) and the well-being of the people in India’s North-Eastern Region (NER). When India experienced a decline in poverty, specifically during the post-liberalisation period, the reduction of poverty was lower in the NER, with a wide variation at the state level in the region than in the rest of the country. However, the structural shift in occupations and livelihoods in NER has been sharper than in other parts of the country. In this context, this article aims to contribute to an understanding of the issue of occupational diversification in NER. Based on data from three rounds of the National Sample Survey (NSS) Employment and Unemployment Survey and two rounds of the Periodic Labour Force Survey (PLFS), that is, the PLFS of 2017–2018 and 2019–2020. The 2SLS regression analysis highlights the higher inclination of young persons with technical education, people belonging to large families, and females in rural NER towards seeking livelihoods in the non-farm sector. JEL Codes: P46, M51, I21, E24

Rural Non-Farm Sector (RNFs) in Punjab: a Path for Women to Achieve Self-reliance?

Rural Non-Farm Sector (RNFs) in Punjab: a Path for Women to Achieve Self-reliance?

Examining rural income and employment in Bangladesh: A case of structural changes in the rural nonfarm sector in a developing country

AbstractThis study uncovers some important stylised facts about the structural changes in the rural nonfarm (RNF) economy in Bangladesh for the period 2000–2016 and identifies some broad determinants. Our work uses household‐level, secondary sources such as Household Income and Expenditure Survey, Labour Force Survey and Bangladesh Integrated Household Survey. We find that the positive relationship between landownership and rural income has become weaker in recent years, indicating the increasing role of nonland inputs in generating rural income. The share of RNF income in total rural income has increased substantially over the years. The increase in nonfarm income is largely driven by the nonfarm wage income of the richer households, indicating adverse distributional consequences. There are also indications for specialisation in nonfarm activities—the share of income from the ‘mixed’ sources of farm and nonfarm has decreased, and the ‘only nonfarm’ source has increased. Households tend to move away from agriculture and specialise in RNF occupations as the education level increases. Our results offer important insights into rural development strategies and contribute to the broader questions of the development discourse on the structural changes in developing countries.

Gender Wage Gap among Rural Non-farm Sector Employees in India: Evidence from Nationally Representative Survey

This article examines the gender-wise work participation rate and evaluates the wage disparity between male and female workers employed as either regular or casual employees in rural non-farm sectors. Based on the National Sample Survey data of 2004–2005 and 2019–2020, it is found that the gender inequality (against women) in employment opportunity is not only prevalent in the rural non-farm labour market but also on the rise during the last one and a half decades. The perceived difference in human capabilities between women and men and the non-availability of enough job opportunities could be a major driver of this inequality, apart from the existing social stigma in hiring the women in the rural labour market. This is reflected by the rise in the mean wage difference between two genders during 2004–2005 and 2019–2020. Both the mean and the quantile decomposition results suggest that a higher percentage of gender wage differentials is due to endowment components or labour productivity differences. Because of the existence of the ‘sticky floor’ phenomenon, the wage disparity is relatively larger at the bottom end of the earning distribution. But it reduces when we stride towards higher quintiles on the wage distribution. Hence, it is argued that policies aimed at enhancing the skill endowment of rural women can substantially reduce both the non-farm sector gender wage gap and the inequality in access to non-farm employment.

Does Rural Micro Enterprises really grow? Evidence from Growth patterns of the Nonfarm Micro Manufacturing Enterprises in Rural Tanzania

The question on whether micro enterprises grow or not have been a debate among scholars for so long. This study provides an important contribution to this dispute discussion. It sampled and assessed a total of 62 micro manufacturing enterprises in rural Tanzania`. Both primary and secondary were collected for analysis. This study applied trend analysis to examine growth patterns of the rural micro manufacturing enterprises. Sales, employment, value added and gross mixed income were the key variables to determine whether an enterprise grows or do not. Results shows that most of rural nonfarm micro manufacturing enterprises do not grow at expected rate with majority remaining at the same level of growth for so long. This study established that an increased sale has not been substantial and that the rural nonfarm micro manufacturing enterprises has continued to consist only owner. Value added and gross mixed income of the rural micro manufacturing enterprises is declining. The government need to review its policies relating to rural nonfarm sector by ensuring that there is appropriate and suitable institutional arrangement for support. Rural nonfarm micro manufacturing enterprises will be required to be more proactive and capitalize on available opportunities in Local Government Authorities such as the 4-4-2 program in order to cut the rising cost of doing business in rural areas.

Rural non-farm engagement and agriculture commercialization in Ghana

PurposeGhana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural farming households from poverty have been narrowed to the promotion of agricultural development to the neglect of the rural non-farm sector. However, this is fast changing in the advent of a burgeoning rural nonfarm economy and must engage the attention of policy actors. This study thus assesses the effect of non-farm participation on households' level of commercialization of agricultural crops in Ghana.Design/methodology/approachThe study applies a generalized structural equation model (GSEM) to the Ghana Living Standards Survey round 6 dataset, a stratified and nationally representative random sample of 16,772 households in 1,200 enumeration areas.FindingsThis study finds that non-farm participation increases the produce sold to output ratio. It is concluded that non-farm engagement by farmers boosts commercialization in Ghana. Thus, for the Ghanaian and similar contexts, agricultural development interventions that incorporate non-farm activities are more likely to be successful in improving livelihoods.Research limitations/implicationsThe study uses only the ratio of sales value to output value definition for commercialization and acknowledges use of multiple definitions could be superior.Originality/valueVarious empirical studies have examined the link between the farm and nonfarm sectors. This paper is original in its approach as it tackles an aspect of the subject that has been understudied, namely, an exploration of nonfarm and farm linkages from the perspective of agricultural commercialization.

Determinants of non-farm employment in Punjab: Evidence from National Sample Survey Rounds

There is growing consensus among the social scientist that for the development of rural economy, rural non-farm sector should be thriving. The present study is an attempt to study the factors enabling the rural households of Punjab to participate in the rural non-farm activities. In the present study, the household level data of National Sample Survey Organization’s employment-unemployment 50th round and 68th round is utilized. The rural households of Punjab are categorized into; self-employed, casual labourer, regular or salary earners and others in farm as well as non-farm sector. The logit regression model for both the rounds are utilised to study the factors impacting the participation as self-employed, casual labourers, and regular wage earners in rural non-farm sector. As compared to the year 1993-94, in the year 2011-12, the proportion of households earning their livelihood in rural non-farm sector has increased. Moreover, the proportion of casual labourer in rural non-farm sector has also increased. The choice of occupations among the self-employed, regular salary earners and causal labourer in the rural non-farm sector is also changing in Punjab. The factors like education, number of skilled members in the households, head’s education, household belonging to developed districts significantly impacted the choice of working in rural non-farm sector of Punjab. The study recommends that with increase in investment in education and developing the infrastructure in rural areas can develop the rural non-farm sector.

An Empirical Study on Rural Non-farm Employment in Developing and Urbanised Regions of Maharashtra, India

Maharashtra accounts for a meagre share of employment in the rural non-farm sector compared to the other states. There is a high degree of disparity in the socio-economic development, level of urbanisation and social infrastructure in Maharashtra, due to which there are differences in the factors affecting participation in rural non-farm employment (RNFE) across the different regions in the state. An empirical study of Kadam Wak Wasti village in the Pune district in Maharashtra reveals that rural men dominate RNFE while rural women are engaged in the farm sector. The service sector accounts for the majority of RNFE in the village. The casual nature of non-farm employment dominated the sector. The educated and skilled individuals in the village were engaged in RNFE, while most of the landless and uneducated individuals were confined to the farm sector. Agricultural labour was considered the last resort due to low wages and a lack of required skills. Thus, urbanisation and proximity to an urban area positively impact the growth of RNFE, affirming that the growth of RNFE in the developing and urbanised regions of the state is due to pull or growth-induced factors. JEL: A10, J01, J21, R10, R11

Socio-Economic Aspects of Rural Transformation in Punjab

The objective of this study was to examine the rural transformation in rural Punjab and India. Both Kerala and Punjab experienced top positions in rural transformation in an economic context. Nevertheless, Kerala remained at the top while Punjab witnessed an intermediate position among other states in the socio-economic context. Amritsar and Bathinda recorded a high level but Hoshiarpur's low level of rural transformation in a socio-economic context. The analysis revealed a disparity between backward and developed regions at the state and district levels that led to socio-economic inequality in the region. Hence, the rural non-farm sector is a viable option for inclusive growth.

NON-FARM LIVELIHOOD DIVERSIFICATION AND SUB-SAHARAN AFRICA’S RURAL STRUCTURAL TRANSFORMATION: A REVIEW

In the past, rural households’ were generally regarded as farmers, foresters or fisher-folk that participate only marginally in non-farm activities, except when they migrate out of rural areas. Nevertheless, despite the common generalization of the rural populace, especially in the developing world, as subsistence farmers, in certain cases a substantial portion of the income that accrue to rural households’ emanates from the rural non-farm sector. Hence, while agriculture has traditionally played a key role in the economy of developing countries, of late an increasing participation of farm households in the non-farm sector has been reported. Accordingly, one phenomenon that is gaining traction in the rural development parlance is the promotion of, and support for, non-farm livelihood diversification. A pertinent question to ask is whether this rising interest in the rural non-farm sector suggests that structural transformation away from agriculture has been taking place in Sub-Saharan Africa?