scholarly journals Transformation of labor participation on off-farm diversification: insights from rural households in Indonesia

2021 ◽  
Vol 892 (1) ◽  
pp. 012015
Author(s):  
D N Asih
Keyword(s):  
Rural Areas ◽  
Agricultural Sector ◽  
Rural Households ◽  
Household Head ◽  
Economic Transformation ◽  
Crop Failure ◽  
Data Set ◽  
Income Source ◽  
Farm Work ◽  
Income Sources

Abstract This study analyses the rural transformation and the determinants of off-farm work diversification in Indonesia. Based on employment growth, the study explores the transformation of the labour sector to off-farm work as an alternative income source in mitigating the decreasing carrying capacity of the agricultural sector. Using a panel data set from rural households in Central Sulawesi, the study applied a random logit model to account for the determinants of off-farm participation and economic mobility over time. The results show that crop failure is a key driver of off-farm work diversification which is further compounded by several factors including asset holdings, the age and education level of the household head by 51.1%, 21.77%, 1.59% and 18.59% respectively. These results confirm that ‘these push’ factors are motivating the rural household on off-farm labour allocation, which indicate the implications of economic transformation through the diversification of income sources and labour allocation away from agriculture subsystems in rural areas in Indonesia.

Growth of Rural Indebtedness in Punjab

2020 ◽  
pp. 336-341
Keyword(s):  
Financial Institutions ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Rural Households ◽  
Small Sample ◽  
Access To Health ◽  
Utilisation Pattern ◽  
Agricultural Labourers

The problem of indebtedness among the rural households of Punjab was become more serious in the last two decades. A large number of studies were carried out in India and abroad to look into the problem of rural indebtedness and its consequences but most of these studies are either based upon a very small sample of a few districts or cover the farmers only. The present study would be wider in scope as it was also included artisans, agricultural labourers (non- cultivators) along with the farmers (cultivators). This study analysed the situation of Punjab as a whole and district wise analysis was done. Therefore, in the present study, an attempt was made to analyse the growth of indebtedness among the rural households in Punjab and attempt was made to explain the utilisation pattern of loan used by rural households and tried to trace out how the situation of household indebtedness in the Punjab evolved and changed over the course of about ten years. The study will be helpful to planners, academicians, researchers as well as policymakers for solving the problem of indebtedness among rural households for the betterment of the society as a whole. It is suggested that encouragement should be given to subsidiary occupations, improvement in access to health at subsidised rate in rural areas to curb the indebtedness and to monitor the informal mechanism of credit by Government and financial institutions along with availability of the appropriate delivery of credit into the agricultural as well as non-agricultural sector of rural areas by eliminating costly sources of money lenders for the accurate functioning of the economy.

scholarly journals THE ISSUE OF INCOME DIVERSIFICATION AMONG RURAL FARMING HOUSEHOLDS: EMPIRICAL EVIDENCE FROM KWARA STATE, NIGERIA

2018 ◽  
Vol 49 (3) ◽  
pp. 231-238 ◽  
Author(s):  
Adeniyi Felix Akinrinde ◽  
Kemi Funmilayo Omotesho ◽  
Israel Ogulande
Keyword(s):  
Rural Areas ◽  
Household Head ◽  
Sampling Technique ◽  
Structured Interview ◽  
Farm Size ◽  
Farm Income ◽  
Income Diversification ◽  
Income Sources ◽  
Farming Families ◽  
The Government

The rising incidences of poverty among rural farming families are the reason behind renewed interest in income diversification. This study determined the level of income diversification; identified alternative income sources; examined the reasons for diversification; and identified the constraints to diversification. A three-stage random sampling technique was used in selecting 160 households on which a structured interview schedule was administered. Descriptive statistics, a Likert-type scale, and the Pearson’s Product Moment Correlation were used for data analyses. Findings reveal that 1.3% of the households had no additional sources of income while 40.6% had at least four. Trading (55%) and livestock keeping (40.7%) were the most popular alternative income sources. The declining farm income (mean = 2.96) was the primary reason for diversification, while poor rural infrastructure (mean = 3.04) was the most severe constraint to income diversification. Farm size, access to extension services, household size, age and educational level of the household head were significantly related to the level of income diversification at p < 0.05. The study concluded that the level of income diversification was high and influenced by socioeconomic characteristics of the households. It recommends that the government should provide adequate infrastructural facilities in rural areas. Farmer associations should also ensure better prices for agricultural produce through joint marketing.

scholarly journals Determinants of Off-farm Employment Participation of Women in Rural Uganda

2019 ◽  
pp. 28-41
Author(s):  
Fang Cheng ◽  
Haisen Zhang ◽  
Nobeji S. Boniphace
Keyword(s):  
Gender Gap ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Agricultural Sector ◽  
Sample Selection ◽  
Household Head ◽  
Rural Poverty ◽  
Economic Activities ◽  
Second Stage ◽  
The Government

Off-farm employment in rural areas can be a major contributor to rural poverty reduction and decent rural employment. While women are highly active in the agricultural sector, they are less active than men in off-farm employment. This study analyzes the determinants of participation in off-farm employment of women in rural Uganda. The study is based on a field survey conducted in nine districts with the sample size of 1200 individual females. A two-stage Hechman’s sample selection model was applied to capture women’s decision to participate and the level of participation in non-farm economic activities. Summary statistics of the survey data from rural Uganda shows that: i) poverty and non-farm employment has a strong correlation, implying the importance of non-farm employment as a means for poverty reduction; and ii) there is a large gender gap to access non-farm employment, but the gender gap has been significantly reduced from group of older age to younger generation. The econometric results finds that the following factors have a significant influence on women’s participation in off-farm employment: education level of both the individual and household head (positive in both stages); women’s age (negative in both stages); female-headed household (negative in first stage); household head of polygamous marriage (negative in both stages); distance from major town (negative in the first stage); household size (positive in the second stage); dependency ratio (negative in the second stage); access to and use of government extension services (positive in the first stage); access to and use of an agricultural loan (negative in the second stage); and various district dummies variables. The implications of these findings suggest that those policies aimed at enhancing the identified determinants of women off-farm employment can promote income-generating opportunities for women groups in comparable contexts. In order to capitalize on these positive linkages, policies should be designed to improve skills and knowledge by providing education opportunities and increasing access to employment training, assistance services and loans for non-farm activities and by targeting women in female-headed, large and distant households. The government should increase investments in public infrastructure and services, such as roads, telecommunications and emergency support.

scholarly journals Household level determinants of food insecurity in rural areas of Dire Dawa, eastern Ethiopia

2009 ◽  
Vol 9 (30) ◽  
pp. 1914-1926
Author(s):  
Ayalneh Bogale ◽  
◽  
Shimelis A ◽  
Keyword(s):  
Food Security ◽  
Food Insecurity ◽  
Survey Data ◽  
Rural Areas ◽  
Rural Households ◽  
Household Head ◽  
Household Food Insecurity ◽  
Household Level ◽  
Household Food ◽  
Dire Dawa

Even though the struggle to achieve food security at the household level in the rural areas of Ethiopia dates back a long period, it has remained as a challenging goal even today. Making their living on marginal, moisture stressed, heavily degraded and less productive land, households in rural areas of Dire Dawa face persistent food shortages. The design and implementation of effective measures to reduce household food insecurity in the region depends on in-depth understanding of its covariates. This study seeks to address these issues by assessing location specific socio-economic factors that influence food insecurity of households in rural areas of Dire Dawa Administrative region. The analysis is based on survey data gathered from randomly selected 115 sample rural households in the study area. A binary logit model was used to identify the factors influencing household level food insecurity. A total of thirteen explanatory variables were included in the empirical model. The empirical results estimated using the survey data to identify the determinants of food insecurity among rural households in the study area revealed mixed impressions. Among variables considered , family size, annual income, amount of credit received, access to irrigation, age of household head, farm size, and livestock owned showed theoretically consistent and statistically significant effect. However, estimated coefficients of number of oxen owned and dependency ratio showed theoretically inconsistent and statistically insignificant effect on the probability of household to be food insecure.. Estimated coefficients of sex of household head, total off-farm income, education of household head and amount of food aid received were not found to be statistically significant in determining household food insecurity in the study area. The findings imply that improvement in food security situation needs to build assets, improve the functioning of rural financial markets and promote family planning. These areas could provide entry points for policy intervention to reduce hunger and augment household and community livelihood opportunities.

Shocks and credit choice in Southern Ethiopia

2014 ◽  
Vol 74 (1) ◽  
pp. 87-114 ◽  
Author(s):  
Davide Castellani
Keyword(s):  
Rural Areas ◽  
Rural Households ◽  
Management Strategies ◽  
Extreme Value Distribution ◽  
Multinomial Logit Model ◽  
Southern Ethiopia ◽  
Random Component ◽  
Data Set ◽  
Content Type ◽  
Transfer Strategies

Purpose – The purpose of this paper is to examine how shocks suffered by rural households in Ethiopia influence their decision to borrow and the source of credit. Design/methodology/approach – First, suppose a household faces a set of four borrowing alternatives: only formal borrowing, only informal borrowing, both formal and informal borrowing, and non-borrowing. Second, the paper assumes that the random component is independently and identically distributed in accordance with the extreme value distribution. These assumptions lead to the multinomial logit model. The paper estimates the model using data from a survey of 350 rural households in Southern Ethiopia. Findings – The paper finds that shocks are important factors in explaining both the decision to borrow and the source of credit. In particular, negative shocks that affect household's assets, such as the seizing of farmland and theft, or human capital, such as the death of the family head, reduce the probability of borrowing from formal lenders or from both formal and informal lenders at the same time. The study supports only to some extent the assumption that informal credit contributes to smooth consumption. Last, networking effect is very significant and demonstrates how the two markets interact. Research limitations/implications – A model that would consider dynamic consumption patterns would have been more appropriate. In fact, one of the limitations of the study is the reliance on a cross-section analysis and the data is limited to just one village. Further research would extend the data set geographically and across time. Practical implications – The formal lenders are not willing to provide contingent loans, maybe because of a limited ability to assess and diversify risk. Besides, the available formal credit products are not proper to finance long term risk management strategies but pesticides, fertilizers and improved seeds that are entirely used in every agricultural cycle. In this regard, proper risk transfer strategies and instruments, as well as better tailored loan products, are needed in order to increase outreach into the rural areas. Originality/value – To the authors’ knowledge, this is the first paper that investigates how shocks influence the decision to borrow and the source of credit in Ethiopia.

scholarly journals Cities and Rural Transformation

2019 ◽  
pp. 172-204
Author(s):  
Xinshen Diao ◽  
Peixun Fang ◽  
Eduardo Magalhaes ◽  
Stefan Pahl ◽  
Jed Silver
Keyword(s):  
Rural Areas ◽  
Rural Households ◽  
Rural Poverty ◽  
Economic Transformation ◽  
Small Cities ◽  
Rural Transformation ◽  
Rural Employment ◽  
Technological Adoption ◽  
Urbanized Areas ◽  
The City

The chapter focuses on answering four broad questions relevant to economic transformation in Ghana. First, are patterns of rural employment changing with urbanization and do these changes have any spatial patterns that are associated with proximity to cities of different sizes? Secondly, what are the impacts of rural transformation on the youth in the rural areas? Thirdly, what are the impacts of urbanization on agricultural intensification for youth and non-youth? Finally, what are the welfare or income implications of the rural transformation that has created heterogeneous livelihood opportunities? Proximity to cities has a strong effect on the exit of rural households from agriculture, and this trend is stronger with increases in the size of the city. Only when considering youth-headed rural households, do they become more likely to exit agriculture everywhere including in northern districts with small cities. Technological adoption is higher among youth in the more urbanized areas. Rural poverty rates appear consistently lower among non-agricultural households.

scholarly journals Determinants of Income Diversification and Its Effects on Household Income in Rural Vietnam

2014 ◽  
Vol 221 ◽  
pp. 20-41
Author(s):  
KHAI TRẦN TIẾN ◽  
Danh Nguyễn Ngọc
Keyword(s):  
Household Income ◽  
Rural Households ◽  
Generalized Method Of Moments ◽  
Physical Capital ◽  
Living Standard ◽  
Income Diversification ◽  
Data Set ◽  
Household Level ◽  
Income Sources ◽  
Economic Regions

Exploiting data of Vietnam Household Living Standard Survey 2010, the study aims at finding determinants of income diversification at household level in rural Vietnam and evaluating effects of income diversification on household income. The data set covers 6,571 rural households of eight socio-economic regions. Herfindahl-Hirschman index (HHI) is applied to show income diversification at household level. Two-limit tobit model is applied to detect the effects of household features and community characteristics on HHI, and then generalized method of moments (GMM) is employed to test the effects of HHI on household income. The results show that human capital in both quantity and quality terms plays a substantial role in encouraging rural households to diversify their income-generating activities. Rural households with higher education level and higher diversification ability tend to have more diverse income sources. Owning larger sources of physical capital, or better credit accessibility, and social capital also helps rural households improve income diversity. The results also confirm that income diversification is the dynamic of rural income improvement. Households can increase their income by diversifying their farm and non-farm activities.

scholarly journals Economic Aspects of Rural Tourism

2003 ◽  
pp. 55-71
Author(s):  
Bernadett Bainé Szabó
Keyword(s):  
Agricultural Sector ◽  
Cost Benefit ◽  
Rural Tourism ◽  
Arts And Crafts ◽  
Cultural Economic ◽  
Income Source ◽  
Income Sources ◽  
Long Run ◽  
Summer Time ◽  
The Cost

necessary to ensure the livelihoods of those leaving the agricultural sector and to supplement the incomes of those working in agriculture. I research rural development in four settlements in Hajdú-Bihar County, in Balmazújváros, Hortobágy, Tiszacsege and Egyek, all bordering Hortobágy National Park.There are many alternative income sources in settlements in the Hortobágy area, such as organic farming, production herbs, hungaricums, small animals and arts and crafts, as well as rural tourism. Rural tourism is not for subsistence, but a supplementary income source, mainly available during the summer time. I made a survey of rural hosts in the four examined settlements, and according to my results, I constructed a model reflecting the cost-benefit relation, as well as the payment period conditions of rural tourism. I am going to show whether it is worth dealing with rural tourism, and if yes, under what conditions. Rural tourism contributes to the maintenance of rural modes of living, in this way it has significant cultural, economic, ecological and social aspects, as well. It is crucial for settlements to create the appropriate conditions needed for joining rural tourism, if it is worth joining at all, and to realise investments for all these. Rural tourism has strict requirements for the levels of environment, infrastructure and services. Studying the Western-European practices, Hungary is lagged behind in the conditions of rural tourism and rural hosts have done their activities mainly out of necessity and not to maintain traditions. Rural tourism may result in success only by co-operation and over the long-run.

Heterogeneous effects of rural land property mortgage loan program on income

2018 ◽  
Vol 10 (4) ◽  
pp. 695-711 ◽  
Author(s):  
Xi Yang ◽  
Jianchao Luo ◽  
Wenshou Yan
Keyword(s):  
Rural Areas ◽  
Agricultural Sector ◽  
Agricultural Productivity ◽  
Property Right ◽  
Mortgage Loan ◽  
Western China ◽  
Rural Land ◽  
Data Set ◽  
Content Type ◽  
Loan Program

Purpose The innovative rural land property right mortgage loan program (RLPRMLP) provides a new channel for farmers to secure borrowing from microfinance institutions. Farmers’ land property right could be used as collateral to deal with moral hazard and adverse selection issues. The purpose of this paper is to document the effects of the RLPRMLP on households’ income using a unique data set from 1,279 households’ survey in Western China during 2012–2014. Design/methodology/approach At the first stage, the authors evaluate the impacts of RLPRMLP on households’ income to get the benchmark results when the authors control household’s observed and unobserved characteristics. To address the potential endogeneity issue resulting from the self-selection of farmers into the rural financial market, the authors apply the treatment effect model to identify the csusal effects of the innovative loan approach on a household’s income. Findings The empirical results favor the belief that participating in the RLPRMLP helps the households improve their total income (at least by 20.2 percent) and income per capita. This income-improving channel is only through agricultural sector, rather than through non-agricultural sector which potentially helps to deal with the inequality issue within poor regions. The results are robust when the authors control households’ characteristics, including observed and unobserved, and solve the endogeneity issue. Participating in the RLPRMLP could encourage farmers to invest more in the agricultural sector and increase agricultural productivity, which is the main mechanism of the income-improving effect of the RLPRMLP. Originality/value The innovative mortgage loan program provides a new channel for farmers to get loan. Land property right reform is being currently applied in rural China. Testing the effectiveness of combining land property right and microfinance loan method is necessary for the government policy making and development of rural areas. The findings are striking. The income improvement mechanism mainly works through agricultural sector, potentially because of the reform of land property, contributing to the increase of marginal product of land, i.e., the increase of agricultural productivity. These could help the development of microfinance theory, and the innovative loan method could be applied to other developing countries.

scholarly journals Multilevel and Spatially Heterogeneous Factors Influencing Poor Households’ Income in a Frontier Minority Area in Northeast China

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Binyan Wang ◽  
Mark W. Rosenberg ◽  
Shijun Wang ◽  
Peifeng Yang ◽  
Junfeng Tian
Keyword(s):  
Northeast China ◽  
Rural Households ◽  
Arable Land ◽  
Household Head ◽  
Household Level ◽  
Farm Work ◽  
Factors Influencing ◽  
Poor Households ◽  
Environmental Level ◽  
Minority Area

Increasing the income of poor rural households is essential for the realization of China’s goal of sustainable development, which entails inclusive and equitable development and reducing the developmental gap between urban and rural areas. We conducted a case study of Wangqing County, a frontier minority area in Northeast China to examine spatial patterns and income differentials among poor rural households in this area. We quantified existing associations between household-level and environmental-level characteristics and income by applying hierarchical linear models. We subsequently applied Geographically Weighted Regression to analyze the spatial heterogeneity of the environmental-level variables and develop an understanding of the interaction mechanism of influencing factors. The results revealed that the distribution of villages, where income levels were similar, showed significant spatial agglomeration characteristics. Our findings also provide empirical evidence that household- and village-level characteristics together determine the income of poor households, but that household-level characteristics determine destitution to a greater extent than environmental characteristics. More specifically, the sex, health condition, and labor capacity of the household head, household size, the dependency ratio, social welfare, and off-farm work are significantly associated with household income. At the environmental level, arable land, the distance to the county center, and the average altitude had spatially heterogeneous impacts that varied in direction and intensity. This systematic study provides a more comprehensive and integrated understanding of the factors influencing the income of poor households in a frontier minority area in Northeast China.

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