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Microfinance and rural non-farm employment in developing countries

Author

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  • Shyamal Chowdhury

    (University of Sydney, Australia, and IZA, Germany)

Abstract

The rural non-farm sector plays an important role in diversifying income for rural households in developing countries and has the potential to emerge as a major source of employment. In some cases it has outgrown the agricultural sector, in part due to the expansion of credit through microfinance institutions that are supported by governments, donor agencies, and businesses. However, future expansion of the rural non-farm sector requires increased flexibility in credit contracts, as well as decreasing the cost of credit and the delivery of complementary inputs, e.g. skills training.

Suggested Citation

  • Shyamal Chowdhury, 2017. "Microfinance and rural non-farm employment in developing countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 350-350, April.
    • Handle: RePEc:iza:izawol:journl:2017:n:350
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    References listed on IDEAS

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    More about this item

    Keywords

    microfinance; non-farm employment; developing countries;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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