The Returns to Participation in the Nonfarm Sector in Rural Rwanda
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World Bank, Washington, D.C.
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In this paper, we investigate the
differences in outcomes (earnings and consumption) between
individuals (households) who participate in the non-farm
sector and those who do not. We use propensity score
matching methods, where we create appropriate comparison
groups of individuals and households. First we find that
non-farm self-employed individuals in rural Rwanda have
significantly higher earnings than farm workers and non-farm
formal employees. Second, we show that the benefits to
non-farm self-employment are much higher among the non-poor
than among the poor. Third, we show that diversified
households, those with a farm and a non-farm enterprise, are
less likely to be poor. Finally, farm households who do not
participate in the market have significantly lower
consumption levels than households that do. However, the
benefits to market participation appear to matter less for
the poor than for the non-poor. We find little difference in
expenditures between market participants and non-market
participants, for comparable households in the bottom 40% of
the expenditure distribution.
Palabras clave
ADULTS, BANKS, BARRIERS TO ENTRY, CIVIL SERVANTS, COMMUNITIES, DEMOGRAPHICS, ECONOMIC ACTIVITY, EDUCATION, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPLOYMENT, ENDOWMENTS, EXPENDITURES, FARMS, FOOD SECURITY, HEALTH, HOUSEHOLDS, HOUSING, HUMAN DEVELOPMENT, INCOME, INSURANCE, LABOR FORCE, LIVING CONDITIONS, MIGRANTS, MIGRATION, MOTHERS, MOTIVATION, OCCUPATIONS, PARENTS, POLICY RESEARCH, PRODUCTIVITY, PUBLIC SECTOR, REFUGEES, RURAL AREAS, RURAL DEVELOPMENT, SAVINGS, SOCIAL CAPITAL, SOCIAL ISSUES, SOCIAL NETWORKS, SOCIAL SERVICES, SOCIAL STATUS, UNEMPLOYMENT, WAGES, WIDOWS, WORKERS