JP Journal of Biostatistics

The JP Journal of Biostatistics is a highly regarded open-access international journal indexed in the Emerging Sources Citation Index (ESCI). It focuses on the application of statistical theory and methods in resolving problems in biological, biomedical, and agricultural sciences. The journal encourages the submission of experimental papers that employ relevant algorithms and also welcomes survey articles in the fields of biostatistics and epidemiology.

Submit Article

UNDERSTANDING RURAL AGRICULTURAL LABOR MOBILITY IN AFRICA - A PANEL ANALYSIS OF THE TANZANIAN CASE

Authors

  • Godwin Debrah
  • Kwami Adanu

Keywords:

nonfarm, self-employment, Tanzania, panel, wage employment, labor migration.

DOI:

https://doi.org/10.17654/0973514322004

Abstract

Facilitating outflow of surplus labor in African agriculture is important for increasing rural agricultural wages, making African labor resources more productive. This paper uses rare panel data on rural households in Tanzania to investigate patterns in rural non-farm economy (RNFE) employment choices. The paper is further distinguished from regular RNFE studies by its concentration on farmer choices between non-agricultural wage employment and non-agricultural self-employment. Results suggest that assets are key predictors of households’ participation in agriculture as well as in the rural nonfarm economy. In general, household participation in non-agricultural wage employment (over agricultural employment) correlates positively with educational attainment, non-agricultural wealth, access to electricity, and household size, but declines in land size, and agricultural wealth index. Similarly, household participation in non-agricultural self-employment (over agricultural employment) is increasing in non-agricultural wealth and household size, and decreasing in agricultural wealth, and age of household head. Finally, household participation in non-agricultural self-employment (over non-agricultural wage employment) is increasing in non-agricultural wealth, and decreasing in access to electricity.

Received: November 5, 2021
Accepted: December 27, 2021

References

P. Bardhan and C. Udry, Development Microeconomics, Oxford University Press, Oxford, 2019.

D. Contreras, R. Gillmore and E. Puentes, Self-employment and queues for wage work: evidence from Chile, Journal of International Development 29(4) (2017), 473-499.

B. Davis, D. S. Giuseppe and A. Zezza, Are African households (not) leaving agriculture? Patterns of households’ income sources in rural Sub-Saharan Africa, Food Policy 67 (2017), 153-174.

K. Deininger and P. Olinto, Rural nonfarm employment and income diversification in Colombia, World Development 29(3) (2001), 455-465.

S. Démurger, M. Fournier and W. Yang, Rural households’ decisions towards income diversification: evidence from a township in northern China, China Economic Review 21(S1) (2010), S32-S44.

A. Drall and S. K. Mandal, Investigating the existence of entry barriers in rural non-farm sector (RNFS) employment in India: A theoretical modelling and an empirical analysis, World Development 141 (2021).

R. Dysney and J. Gatherwood, Housing wealth, liquidity constraints, and self-employment, Labour Economics 16(1) (2009), 79-88.

D. S. Evans and L. S. Leighton, The Determinants of changes in U.S. self-employment, Small Business Economics 1(2) (1989), 111-112.

G. S. Fields, Self-employment and Poverty in Developing countries, IZA World of Labor (2014), 1-10.

S. Haggblade, P. Hazell and T. Reardon, The rural non-farm economy: prospects for growth and poverty reduction, World Development 38(10) (2010), 1429-1441.

J. P. Hatala, Identifying barriers to self-employment: the development and validation of the barriers to entrepreneurship success tool, Performance Improvement Quarterly 18(4) (2005), 50-70.

J. Heintz and L. Pickbourn, The determinants of selection into non-agricultural self-employment in Ghana, Margin: The Journal of Applied Economic Research 6(2) (2012), 181-209.

P. Lanjouw, J. Quizon and R. Sparrow, Non-agricultural earnings in peri-urban areas of Tanzania: Evidence from household survey data, Food Policy 26(4) (2001), 385-403.

W. A. Lewis, Economic development with unlimited supplies of labour, The Manchester School 28(2) (1954), 139-191.

Y. Liu, Pushed out or pulled in? Participation in non-farm activities in rural China, China Agricultural Economic Review 9(1) (2017), 111-129.

T. Markussen, M. Fibæk, F. Tarp and N. D. Tuan, The happy farmer: self- employment and subjective well-being in rural Vietnam, Journal of Happiness Studies 19 (2018), 1613-1636.

Y. Mundlak, On the pooling of time series and cross-section data, Econometrica 46 (1978), 69-85.

J. Nykvist, Entrepreneurship and liquidity constraints: Evidence from Sweden, Scandinavian Journal of Economics 110 (2008), 23-43.

S. Parker, The Economics of Entrepreneurship, Cambridge, MA: Cambridge University Press, 2009.

P. Pingali, A. Aiyar, M. Abraham and A. Rahman, Rural Livelihood Challenges: Moving out of Agriculture, Transforming Food Systems for a Rising India, Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, Cham, 2019.

B. Senadza, Non-farm income diversification in rural Ghana: Patterns and Determinants, African Development Review 24(3) (2012), 233-244.

N. Simoes, N. Crespo and S. B. Moreira, Individual determinants of self-employment entry: what do we really know? Journal of Economic Surveys 30 (2016), 783-806.

J. E. Taylor and A. Yunez-Naude, The returns from schooling in a diversified rural economy, American Journal of Agricultural Economics 82(2) (2000), 287-297. https://doi.org/10.1111/0002-9092.00025.

J. M. Wooldridge, Econometric Analysis of Cross Section and Panel Data, MIT Press, 2010.

J. M. Wooldridge, Correlated random effects models with unbalanced panels, Journal of Econometrics 211 (2019), 137-150.

P. Zahonogo, Determinants of non-farm activities participation decisions of farm households in Burkina Faso, Journal of Development and Agricultural Economics 3(4) (2011), 174-182.

J. Zissimopoulos, L. Karoly and Q. Gu, Liquidity constraints, household wealth, and self-employment: the case of older workers, RAND Working Papers WR-725, RAND Corporation Publications Department, California, 2009.

Published

2021-01-17

Issue

Section

Articles

How to Cite

UNDERSTANDING RURAL AGRICULTURAL LABOR MOBILITY IN AFRICA - A PANEL ANALYSIS OF THE TANZANIAN CASE. (2021). JP Journal of Biostatistics, 19, 57-79. https://doi.org/10.17654/0973514322004