Diversity in Rural Incomes: Issues Affecting Access at Household Levels
This presentation discusses reasons why poor people in rural areas seek opportunities to diversify income. It also examines factors affecting poor people's access to non-farm employment.
The presentation states that the rural poor diversify incomes in order to smooth income and consumption patterns, increase incomes, reduce risk and improve long-run income prospects. Distress and inadequate agricultural incomes push landless or small farmers into poorly paid non-farm sector employment. It is also true, however, that demand helps agricultural workers seize more remunerative employment opportunities in the non-farm sector. Factors affecting access to non-farm employment by poor households include:
- Health and nutrition;
- Education;
- Finance;
- Land ownership;
- Social networks;
- Household composition;
- Infrastructure.
Finally, the paper recommends that policy intervention and research should focus on heterogeneity, infrastructure, pro-poor focus an enabling environment, social networks, financial services, decentralization of government and education.
