Determinants of off-farm employment in Rural Uganda

Off–farm employment is crucial for the rural poor. Not only income from the off – farm activities represents a significant share of the total income of rural households, but also off–farm jobs absorb an increasing proportion of the rural labor among the rural poor without land. Although Uganda’s agricultural sector has tended to receive some policy attentions like National Agricultural Advisory Development Services (NAADS) in rural areas, the rural poor derive their incomes from multiple sources. The data used in this study was from the Uganda National Household Survey (UNHS) 2005/06. A LOGIT MODEL with the binary outcome being the off – farm participation was used. The study concluded by suggesting that the supply and demand sides in the labor market shape off – farm employment. Local village conditions and demand factors as well as individual characters from the supply side act as major key aspects in determining individual’s decision to participate in off – farm activities, typical policies such as improvements in human capital and rural infrastructure could act as important tools for promoting and making the poor benefit from the income opportunities from the off–farm sector.