Determinants of off-farm employment in eastern rural Nepal

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