A Synthesis of Theoretical Concepts for Analysing Non-Farm Rural Employment

Employment diversification is a major livelihood strategy in rural areas and is thus a focal point of the ongoing rural development debate. The issue of non-farm diversification is undoubtedly complex and its determinants are difficult to identify. Increasingly, there is a need to address, clarify and bring together theoretical concepts for analysing non-farm rural employment (NFRE). With this in mind, the objective of this paper is to summarize and link existing theories and to introduce some new aspects with regard to modelling NFRE and employment diversification. NFRE dynamics are closely interrelated with the institutional framework and its incentives and constraints. The behaviour of rural decision-makers also depends on fundamental determinants such as norms and attitudes. The Sustainable Livelihood Framework (SLF) and the demand-pull and distress-push concept focus on the motives and the context in which diversification strategies evolve. To depict economic incentives we will introduce a welfare model which explains the labour allocation processes. We will show that benefits do not only arise for demand-pull shifters, who take up better paid non-farm employment, but also for distress-push shifters, whose incentive to engage in low-paid non-farm activities is to raise aggregate household income. Finally, the decision-making process itself will form the focus of a behaviour model. It also follows the logic of rational choice and can be integrated into the discussion of a synthesis of concepts for the analysis of NFRE. This, in turn, is meant to provide the basis for future empirical research, as well as serve as a thought-provoking impulse for policy makers.rural non-farm employment, diversification, theoretical framework, Labor and Human Capital, O18, Q12,

Systematic Policy Decisions on Direct Income Payments in Agricultural Policies

Direct income payments (DIP) are in the centre of the discussion in the ongoing political debate whether agricultural policy objectives can be pursued in an economically more efficient and less distorting way. This paper discusses under which circumstances DIP are an appropriate and efficient measure to address the objectives of agricultural policies. It identifies and examines the characteristics that DIP should have in the context of different objectives. If governments want to meet their policy objectives by the use of DIP efficiently, a precise definition of the objective is crucial. An optimal policy design achieves a specific objective while keeping the impact on economic distortions low and ensuring efficiency in the allocation of resources. The decision tree for DIP presented in this paper contributes to a more systematic approach to the topic and facilitates the policy design for a sustainable and resource saving economic policy in the field of agriculture. We show that DIP can be used to address different types of policy objectives, but have to be adapted carefully depending on the specific targets. If used as a measure to compensate income losses due to policy changes, DIP could help farmers to adjust to policy changes in an efficient way and, at the same time, release budget funds. Such gains could then be used in and tied to areas that are known to be crucial but currently lack resources due to budget restrictions e.g. the provision of environmental goods and services, which can also be addressed by DIP.Direct income payments, agricultural policy, policy objectives, decision tree, Agricultural and Food Policy, Q18, E6, H5,

Effects of rural non-farm employment on economic vulnerability and income distribution of small farms in Croatia

Replaced with revised version of paper 10/06/09.rural non-farm employment, rural poverty, Croatia, income distribution, Agribusiness, International Development, Labor and Human Capital, Q12, P25, O15, O18,

Non-Farm Diversification Decisions of Rural Households in Macedonia

The non-farm sector is crucial to rural households in transition economies since it offers employment, reduces urban migration and can contribute to poverty reduction, economic growth and a more equal income distribution. This study on diversification decisions and rural incomes reviews evidence from a household survey in Macedonia. It looks at non-farm diversification dynamics and analyses income portfolios and driving forces of diversification decisions. The results confirm that non-farm employment and diversified income portfolios are outstanding features of rural households in Macedonia, where unfavourable economic conditions and insufficient farm incomes have driven farm households to open up income sources in the non-farm sector. Further adaptations of employment strategies are also expected in the future. Three main strategies are identified and analysed by a multinomial logistic regression model: (1) diversification, (2) abandoning of farming activities and (3) expansion of the farm. Households following these strategies can be characterised according to their distinctive profiles. The diversification strategy typically occurs under unfavourable economic conditions, but the households following it can rely on young, well-educated and flexible household heads. Farm households who intend to abandon agriculture are more likely to be located in remote areas. Two types of typical abandoners were identified. The first group represents the phase-out of uncompetitive small-scale farms with no successor. The second group is particularly characterised by their high mobility and their positive attitude towards non-farm employment. The farm expansion strategy occurs under more favourable economic conditions, including a better access to land and positive attitudes towards agriculture.Diversification strategies, non-farm employment, rural development, Macedonia, Consumer/Household Economics, D1, O18, Q12,

Patterns and Determinants of International Migration in Northern Albania

The European Union (EU) is the main source of remittances world wide and Albania, struck by abject poverty, is Europe’s number one country sending out migrants. Albania’s economy as well as its households’ welfare strongly depend on remittances. Consequently, the topic of migration is cutting-edge for EU and Albanian policy makers. Thus, up-to-date information is decisive for taking effective policy measures. This poster paper aims at making a fruitful contribution to understanding the varied context of migration in Albania. It presents recent data on socio-economic characteristics of households with absent family members. A binary logistic regression is employed to identify determinants of participation in international migration in Northern Albania.Albania, migration, remittances, Labor and Human Capital,

Non-farm income diversification of rural farm households in Central and Southeastern Europe: an application of fuzzy set theory

A fuzzy logic model for quantifying farm households’ potential for non-farm income diversification is developed and applied to 1,077 farm households in Bulgaria, Hungary, Poland, Romania, and Slovenia. About three quarters of households have a diversification potential, but not all households use it. An analysis of diversification potential and diversification behaviour shows that there are seven household types in the sample. Not all development options, i.e. farm development, farm exit, or starting non-farm employment, are equally suitable for all households thus fine targeting of policy measures according to the household type could be important for policy makers.rural development, non-farm rural employment diversification, fuzzy logic, transition countries, Community/Rural/Urban Development, C65, D33, J24, Q12,

Some Conceptional Thoughts on the Impact of Social Networks on Non-farm Rural Employment

Everybody knows: rural regions offer fewer possibilities for non-farm employment than urban areas. For this reason, it was the semi-subsistence farm structures that had to absorb the released workers from the big rural state enterprises and the urban-rural migrants fleeing unemployment in the towns in the course of economic transformation. This has created hidden unemployment in farm households and thus low agricultural labour productivity in the European transition economies. From a policy point of view, it is therefore desirable to promote new jobs outside the farm sector in order to decrease the livelihood dependency on agriculture. But do rural people actually have a choice? And if so, will they go for non-farm employment? In Europe's transition economies rural people taking up non-farm jobs seem to do this predominantly due to distress-push and not so much due to demand-pull factors. The former would imply that distress pushes them to earn money even in very low-paid jobs. The latter indicates better remunerated job options because there is demand. When individuals decide what kind of employment to go for, they consider among other factors also the support they can get from relatives and friends, the opinion of the local society in general, the resources they can mobilize and the barriers they are supposed to overcome. Since the late 1990s, a number of studies have been done with respect to non-farm rural employment (NFRE) and its contribution to rural development. However, the role of social capital and the underlying networks in getting access to NFRE has not yet been researched. The objectives of this paper are to give an overview of the social capital concepts, stressing on bonding, bridging and linking social capital.Rural non-farm employment, social networks, transition, Community/Rural/Urban Development, Labor and Human Capital,

Namibia research situation analysis on orphans and other vulnerable children

This item is archived in the repository for materials published for the USAID supported Orphans and Vulnerable Children Comprehensive Action Research Project (OVC-CARE) at the Boston University Center for Global Health and Development.Addressing the needs of orphans and vulnerable children (OVC) and mitigating negative outcomes of the growing OVC population worldwide is a high priority for national governments and international stakeholders across the globe that recognizes this as an issue with social, economic, and human rights dimensions. Assembling the relevant available data on OVC in one place, and acknowledging the gaps that still exist in our knowledge will assist policy makers and program implementers to make evidence-based decisions about how best to direct funding and program activities and maximize positive outcomes for children and their caretakers. This Research Situation Analysis, Namibia Country Brief presents a program-focused summary of available information on: • The number of orphans and vulnerable children in Namibia. • Current policies, programs and interventions designed and implemented to assist them. • Gaps in these policies, programs and interventions. • OVC research conducted between 2004-2008. • Gaps in the Namibian OVC evidence base.The Brief analyzes the available data for critical gaps in the national response and our understanding about whether current interventions are fulfilling the needs and improving the lives of vulnerable children. The report then recommends actions required to increase the knowledge base for improving the effectiveness and impact of OVC programs.The USAID | Project SEARCH, Orphans and Vulnerable Children Comprehensive Action Research (OVC-CARE) Task Order, is funded by the U.S. Agency for International Development under Contract No. GHH-I-00-07-00023-00, beginning August 1, 2008. OVC-CARE Task Order is implemented by Boston University. The opinions expressed herein are those of the authors and do not necessarily reflect the views of the funding agency