The Returns to Participation in the Nonfarm Sector in Rural Rwanda

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...

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Main Authors: Dabalen, Andrew, Paternostro, Stefano, Pierre, Gaëlle
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/12/5623757/returns-participation-non-farm-sector-rural-rwanda
http://hdl.handle.net/10986/14316
id okr-10986-14316
recordtype oai_dc
spelling okr-10986-143162021-04-23T14:03:21Z The Returns to Participation in the Nonfarm Sector in Rural Rwanda Dabalen, Andrew Paternostro, Stefano Pierre, Gaëlle 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 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. 2013-07-01T18:55:03Z 2013-07-01T18:55:03Z 2004-12 http://documents.worldbank.org/curated/en/2004/12/5623757/returns-participation-non-farm-sector-rural-rwanda http://hdl.handle.net/10986/14316 English en_US Policy Research Working Paper;No.3462 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Africa Rwanda
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic 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
spellingShingle 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
Dabalen, Andrew
Paternostro, Stefano
Pierre, Gaëlle
The Returns to Participation in the Nonfarm Sector in Rural Rwanda
geographic_facet Africa
Rwanda
relation Policy Research Working Paper;No.3462
description 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.
format Publications & Research :: Policy Research Working Paper
author Dabalen, Andrew
Paternostro, Stefano
Pierre, Gaëlle
author_facet Dabalen, Andrew
Paternostro, Stefano
Pierre, Gaëlle
author_sort Dabalen, Andrew
title The Returns to Participation in the Nonfarm Sector in Rural Rwanda
title_short The Returns to Participation in the Nonfarm Sector in Rural Rwanda
title_full The Returns to Participation in the Nonfarm Sector in Rural Rwanda
title_fullStr The Returns to Participation in the Nonfarm Sector in Rural Rwanda
title_full_unstemmed The Returns to Participation in the Nonfarm Sector in Rural Rwanda
title_sort returns to participation in the nonfarm sector in rural rwanda
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/12/5623757/returns-participation-non-farm-sector-rural-rwanda
http://hdl.handle.net/10986/14316
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