Determinants of Rural Non-Farm Employment and Income in Paraguay

Abstract

During the last decades considerable research has been carried out on non-farm rural employment and income of farm households. The thesis examines the factors influencing non-farm employment and income among rural individuals in Paraguay. The empirical models show that education, assets, access to public services and language skills influence access to non-farm work. Gender and education play an important role in the intensity of participation, but not on the level of income. Heckman’s selection model shows that there is no evidence of selection bias. Expansion of non-farm employment in rural areas and income diversification are desirable policy objectives because rural individuals require more options to improve their own living standards. Education and social infrastructure must be important components of any policy intervention, focused on training and access to public services.