IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/303936.html
   My bibliography  Save this article

Individual-level Employment Transitions in Rural Viet Nam

Author

Listed:
  • Quang-Thanh Ngo
  • Thuy-Khanh Hong Thai
  • Van-Tien Cao
  • Anh-Tuan Nguyen
  • Ngoc-Hieu Hoang
  • Ngoc-Danh Nguyen

Abstract

Structural transformation in rural areas is a key issue in economic development. While much of the literature on structural transformation has so far focussed on household- or commune levels or even higher aggregate levels, little is known about the individual member level. The paper aims at examining factors that affect the individual-level employment rural transitions in Viet Nam, namely: (1) non-transient farm; (2) positive transient farm; (3) out-of-wage transition; (4) transitory farm-household work; and (5) transitory wage-household work. By taking advantage of the Viet Nam Access to Resources Household Survey with data on 2,698 individuals for two years, 2008 and 2016, using multivariate probit models estimated by generalized structural equation method, we find that individual-level human capital and social capital are important factors affecting employment transition status in the rural area. In addition, changes in individual and household characteristics and local climate conditions at commune level are important to influence various types of employment transitions. These results have implications for the development policy on rural transition in developing countries, highlighting the importance of recognizing the positive aspects of changes in individual-, household-, and commune-levels for rural transformation. Promotion of education attainment is necessary at both individual- and household-level to spur the transition out of farming. Broadened policy mechanisms which support and encourage non-farm employment at the household level are also needed. Likewise, development initiatives that focus on increasing the human and social assets of the individual farmers and farming households are more likely to be successful in supporting livelihood diversification and reducing vulnerability.

Suggested Citation

  • Quang-Thanh Ngo & Thuy-Khanh Hong Thai & Van-Tien Cao & Anh-Tuan Nguyen & Ngoc-Hieu Hoang & Ngoc-Danh Nguyen, 2020. "Individual-level Employment Transitions in Rural Viet Nam," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(01), March.
    • Handle: RePEc:ags:aolpei:303936
    DOI: 10.22004/ag.econ.303936
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/303936/files/446_agris-on-line-2020-1-ngo-thai-cao-nguyen-hoang-nguyen.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.303936?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Quang-Thanh Ngo & Thuy-Khanh Hong Thai & Van-Tien Cao & Anh-Tuan Nguyen & Ngoc-Hieu Hoang & Ngoc-Danh Nguyen, 2020. "Individual-level Employment Transitions in Rural Viet Nam," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(01), March.
    2. Martin, Sarah M. & Lorenzen, Kai, 2016. "Livelihood Diversification in Rural Laos," World Development, Elsevier, vol. 83(C), pages 231-243.
    3. Berdegue, Julio A. & Ramirez, Eduardo & Reardon, Thomas & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Chile," World Development, Elsevier, vol. 29(3), pages 411-425, March.
    4. Ulrik Beck & Saurabh Singhal & Finn Tarp, 2019. "Commodity Prices and Intra-Household Labor Allocation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 436-454.
    5. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
    6. Chuck Huber, 2013. "Generalized structural equation modeling in Stata," Italian Stata Users' Group Meetings 2013 06, Stata Users Group.
    7. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
    8. Banerjee, Biswajit, 1983. "The Role of the Informal Sector in the Migration Process: A Test of Probabilistic Migration Models and Labour Market Segmentation for India," Oxford Economic Papers, Oxford University Press, vol. 35(3), pages 399-422, November.
    9. Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March.
    10. Doss, Cheryl & McPeak, John & Barrett, Christopher B., 2008. "Interpersonal, Intertemporal and Spatial Variation in Risk Perceptions: Evidence from East Africa," World Development, Elsevier, vol. 36(8), pages 1453-1468, August.
    11. Deininger, Klaus & Olinto, Pedro, 2001. "Rural Nonfarm Employment and Income Diversification in Colombia," World Development, Elsevier, vol. 29(3), pages 455-465, March.
    12. Barrett, Sam, 2014. "Subnational Climate Justice? Adaptation Finance Distribution and Climate Vulnerability," World Development, Elsevier, vol. 58(C), pages 130-142.
    13. Rigg, Jonathan & Salamanca, Albert & Phongsiri, Monchai & Sripun, Mattara, 2018. "More farmers, less farming? Understanding the truncated agrarian transition in Thailand," World Development, Elsevier, vol. 107(C), pages 327-337.
    14. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    15. Rennings, Klaus & Ziegler, Andreas & Zwick, Thomas, 2001. "Employment changes in environmentally innovative firms," ZEW Discussion Papers 01-46, ZEW - Leibniz Centre for European Economic Research.
    16. Dirk Bezemer & Junior Davis, 2005. "The rural non-agricultural economy in transition countries: Enterprise level findings from Armenia," Development and Comp Systems 0510020, University Library of Munich, Germany.
    17. Tarp, Finn (ed.), 2017. "Growth, Structural Transformation, and Rural Change in Viet Nam: A Rising Dragon on the Move," OUP Catalogue, Oxford University Press, number 9780198796961.
    18. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
    19. Povel, Felix, 2015. "Measuring Exposure to Downside Risk with an Application to Thailand and Vietnam," World Development, Elsevier, vol. 71(C), pages 4-24.
    20. Junior Davis, 2005. "The rural non-farm economy, Livelihoods and their," Development and Comp Systems 0510016, University Library of Munich, Germany.
    21. Ulrik Beck, 2015. "Local transformation in rural Vietnam: A commune level analysis," WIDER Working Paper Series 065, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Quang-Thanh Ngo & Thuy-Khanh Hong Thai & Van-Tien Cao & Anh-Tuan Nguyen & Ngoc-Hieu Hoang & Ngoc-Danh Nguyen, 2020. "Individual-level Employment Transitions in Rural Viet Nam," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(01), March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Quang-Thanh Ngo, 2018. "Individual-level employment transitions in rural Vietnam," WIDER Working Paper Series 154, World Institute for Development Economic Research (UNU-WIDER).
    2. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    3. Adugna Lemi, "undated". "The Dynamics of Income Diversification in Ethiopia: Evidence from Panel data," Working Papers 3, University of Massachusetts Boston, Economics Department.
    4. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    5. Owusu, Victor & Abdulai, Awudu & Abdul-Rahman, Seini, 2011. "Non-farm work and food security among farm households in Northern Ghana," Food Policy, Elsevier, vol. 36(2), pages 108-118, April.
    6. Pascual, Unai & Barbier, Edward B., 2005. "On- And Off-Farm Labor Decisions By Slash-And-Burn Farmers In Yucatan (Mexico)," Environmental Economy and Policy Research Discussion Papers 31926, University of Cambridge, Department of Land Economy.
    7. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    8. Johny, Judit & Wichmann, Bruno & Swallow, Brent M., 2017. "Characterizing social networks and their effects on income diversification in rural Kerala, India," World Development, Elsevier, vol. 94(C), pages 375-392.
    9. Adugna, Lemi, 2009. "Determinants of Income Diversification in Rural Ethiopia: evidence From Panel Data," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 18(01), pages 116-116, December.
    10. Bagamba, Fredrick & Burger, Kees & Kuyvenhoven, Arie, 2007. "Determinants of smallholder farmer labour allocation decisions in Uganda," 106th Seminar, October 25-27, 2007, Montpellier, France 7920, European Association of Agricultural Economists.
    11. C. S. Murty, 2005. "RURAL NON-AGRICULTURAL EMPLOYMENT IN INDIA - The Residual Sector Hypothesis Revisited," Labor Economics Working Papers 22362, East Asian Bureau of Economic Research.
    12. Riithi, Alexander Njuguna & Irungu, Patrick & Munei , Kimpei, 2015. "Determinants Of Choice Of Alternative Livelihood Diversification Strategies In Solio Resettlement Scheme, Kenya," Dissertations and Theses 269714, University of Nairobi, Department of Agricultural Economics.
    13. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
    14. Atamanov, Aziz & Van den Berg, Marrit, 2012. "Determinants of the rural nonfarm economy in Tajikistan," MERIT Working Papers 2012-080, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Nguyen, Trung Thanh & Nguyen, Loc Duc & Lippe, Rattiya Suddeephong & Grote, Ulrike, 2017. "Determinants of Farmers’ Land Use Decision-Making: Comparative Evidence From Thailand and Vietnam," World Development, Elsevier, vol. 89(C), pages 199-213.
    16. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    17. Zereyesus, Yacob & Embaye, Weldensie & Tsiboe, Francis & Amanor-Boadu, Vincent, 2016. "Participation in non-farm work and vulnerability to food poverty of households in northern Ghana," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235741, Agricultural and Applied Economics Association.
    18. Taruvinga, Amon & Mushunje, Abbyssinia, 2012. "Buffer zone income dynamics for the sub-district producer community: Implications for rural off-farm income, income inequality and the development of household agriculture," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126377, International Association of Agricultural Economists.
    19. Bezu, Sosina & Holden, Stein, 2014. "Are Rural Youth in Ethiopia Abandoning Agriculture?," World Development, Elsevier, vol. 64(C), pages 259-272.
    20. Sharma, Govinda Prasad & Pandit, Ram & White, Ben & Polyakov, Maksym, 2015. "The Income Diversification Strategies of Smallholder Coffee Producers in Nepal," Working Papers 207693, University of Western Australia, School of Agricultural and Resource Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:303936. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.