Determinants of off-farm employment in eastern rural Nepal
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Stagnant agricultural productivity and low returns in farming have led rural residents in
Nepal to look elsewhere for alternative or supplemental income opportunities, primarily
though off-farm employment. Off-farm employment provides supplemental income to
support household expenditure. This study examined the contribution of off-farm
employment to total household income for two ecologically distinct districts of Eastern
Nepal and identified factors differentiating households with on-farm, off-farm and, both
on-and off-farm labour. Variables that differentiated wage labour, skilled labour and
trade employment were determined. Participatory rural appraisal workshops (n=6),
key informant interviews (n=9) and household socio-economic surveys (n=150) were
used to gather data. The lacks of productive land, increased household sizes and higher
educational attainment of household members were all positively associated with
off-farm employment. There were fewer employment opportunities in locations away
from major market centres and for women and disadvantaged groups. The
Brahmin/Chhetri/Newar ethnic group dominated most of the off-farm employment
opportunities. The study suggests that policy intervention measures such as the
provision of irrigation and skill-based training would improve the well-being of rural
women, disadvantaged people sub-groups and those located away from major
employment centres. Market linkages are also an important factor in increasing off-farm
employment opportunities and thus household income.