Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3971
Authors: 
Lay, Jann
M'Mukaria, George Michuki
Omar Mahmoud, Toman
Year of Publication: 
2007
Series/Report no.: 
Kiel Working Paper 1314
Abstract: 
Engagement in non-agricultural activities in rural areas can be classified into survival-led or opportunity-led. Survival-led diversification would decrease inequality by increasing the incomes of poorer households and thus reduce poverty. By contrast, opportunity-led diversification would increase inequality and have a minor effect on poverty, as it tends to be confined to non-poor households. Using data from Western Kenya, we confirm the existence of the differently motivated diversification strategies. Yet, the poverty and inequality implications differ somewhat from our expectations. Our findings indicate that in addition to asset constraints, rural households also face limited or relatively risky high-return opportunities outside agriculture.
Subjects: 
Non-agricultural activities
Poverty
Sub-Saharan Africa
Kenya
Inequality
Income diversification
JEL: 
Q12
O17
I31
Document Type: 
Working Paper

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