Analysis of the pluriactivity of senegalese rural households

Ya Cor NDIONEPhD Candidate

Université Cheikh Anta Diop DakarInitiative prospective agricole rurale

www.ipar.snyacorndione@ipar.sn

2nd International Conference on Sustainable Development in AfricaDakar, Senegal, 26-27 November 2015

Presentation outline Context_Motivations

Research questions/Objectives

Results and discussions

Conclusion and Policy Implications

Key findings

Methodological framework

Context_ Motivations• classical approaches of agricultural and rural development :

develop viable farms large enough to provide adequate incomes to rural households

• persistent poverty of rural populations

• Pluriactivity of rural households : emerging features of the rural world nonfarm activities are ever-increasing like a continuous process of “depeasantization” which

involves reorientating rural economy far from agriculture (Bryceson , 1999) .

• Evidence of higher nonfarm incomes : Over time, nonfarm activities have experienced

a rapid development, contributing to both rural employment and income generation (Haggblade

and al, 2009).

• Income improvement via pluriactivity : solution to rural poverty helps reduce poverty and contributes to balance income distribution (De Janvry and Sadoulet,

2001). Diversification stands as an essential part of agricultural and rural policies (Tocco and

al, 2013).

Context_ Motivations• Pluriactive households do not always have the best socioeconomic

situation. McCoy and Filson (1996) assessed the effects of off-farm labor on the life quality

perception of West Ontario rurals. Low satisfaction levels and lack of leisure time

have been the most frequent issues for the latter

• Pluriactives households : a group that can potentially leave agriculture Part-time farmers, compared to their counterparts, have a lower probability to continue farm

activities (Weiss, 1999)

According to Kimhi (2000), part time agriculture is like a channel through which rural labor

force gets its way out of agriculture.

• Rural pluriactivity can prevent the natural process of structural change

in agricultural sector

Context_ Motivations• Rural pluriactivity, determinants and role:

Widely studied in developed countries, in Asian and in Latin America countries

What about rural African economies ?

• African context: important to understand the behavior of pluriactivity Many households seem to run into an invisible wall in the transition process, as

they have difficulties earning enough income through diversification

The African case of income diversification suggests a more ambiguous image:

Diversification can reinforce class hierarchy as those who get higher incomes

redirect part of their agricultural capital to more gainful non farm activities

(Brycesson, 2002)

Context_ Motivations• Senegalese agriculture is struggling to provide an efficient labor

market to rural households 70% of active labour force works in agriculture

Senegalese rural areas: problem of underemployment (rate of

underemployment of 32.0%), with rainfed agriculture, risks related to

production and climatic hazards

Increasing rural households orientation towards rural non-farm activities• In Senegal, despite the growing importance of rural pluriactivity, little

is actually known about its determinants and its role in income generation for rural households

• Pluriactivity at the household level : pluriactive household as a

household with more than one income-generating activity (Ellis, 2000)

Research questions/Objectives

• Understand rural pluriactivity - its causes and its effects

for rural households in three different agro-ecological

zones of Senegal 1.What are the determinants of pluriactivity choice of households?

2. What is the magnitude and what is the signal sent by the

pluriactivity behavior of Senegalese rural households?

3. Finally what are the effects of that pluriactivity on households

particularly, on their incomes?

Methodological framework• Agricultural Household Model as theoretical model

developed by Singh, Squire and Strauss (1986), has been frequently used to

study the allocation of rural labor force

allows to understand the behavior of rural labor force by integrating

production decisions (agricultural supply and demand factors of

production) and household decisions in terms of consumption and labor

supply.

The model is based on the assumption that households need to maximize

their utility, which is a function of consumption and leisure and is subject to

time and budget constraints.

Methodological framework• Theoretical model

(1)

(2)

(3)

• Empirical design

Logit model

= reservation wage = non farm wage

Study areas

Data collectionAgro-ecological

zones Socio-economiccharacteristics

Data collection:EJMAO 2013 Villages Households

Groundnut Bassin

• Rainfed agriculture • High population density• underemployment • Migration of young people and

women

• Household surveys • Semi-structured

interviews • Focus groups.

19 700

Niayes Region

• Better farming conditions • more nonfarm employment

opportunities • home to migrant farmers coming

from rainfed areas

• Household surveys • Semi-structured

interviews • Focus groups.

13 400

Senegal River Delta

• Benefited from important public investments in water control and in development of irrigated agriculture

• home to migrants farmer coming from rainfed  areas

• Household surveys • Semi-structured

interviews • Focus groups.

13 400

Total   45 1 500

12

34%

5%

61%

Groundnut Bassin

10%

20%

70%

Niayes Region

57%

5%

38%

Delta River Valley

34%

9%

57%Total

Categories of households by Agro ecological zonesResults and discussions

13

VARIABLES Pluri_hhhousehold_size 0.243***age_hhead 0.00456Sex_ hhead -0.133N_Youth 0.135***hh_with_migrant -0.0365N_Oc_worker_ -0.253***N_Less10years -0.266***N_noeduc -0.0485*N_ inf_edu_ -0.203***Niayes Region 1.172***Senegal River Delta 0.651**hh_withland 0.614**availand_hh -0.0143acqui_mod 0.352**nat_ter 0.391*rainfed_crop 0.0592peanut_prod -0.0309cereal_prod -1.011***fruit_prod -0.520**sharerev_AGRhh -0.978***Constant -0.308Observations 1,492

*** p<0.01, ** p<0.05, * p<0.1

logistic results : Determinants of Senegalese rural households pluriactivity

Results and discussionsdifferent models of pluriactivity by agro-ecological zones

• In rain-fed area : agricultural constraints push farm agricultural

households to pluriactivity pluriactivity due to low agricultural productivity , low farm incomes and

persistence of underemployment

households combination of farm and non-farm activities facilitated by the

fact these activities do not have the same exercise periods

Given the insufficiency of farm land, households prefer to turn to non-

agricultural activities

Following a drought period some households try out non-agricultural

activities. This conjectural situation may lead to a stable situation of

pluriactivity

Results and discussions Different models of pluriactivity by agro-ecological zones

• The irrigated areas: agro climatic and economic conditions create a favorable

environment for pluriactivity

Importance of pluriactivity due to the development of agriculture

Pluriactivity in irrigated areas favored by existing opportunities. These

opportunities also explain the passage of exclusively non-farm households

or exclusively farm households to pluriactive households

Households increase and diversify their incomes and can alleviate credit

constraints.

This combination of activities is encouraged by the possibility of

sharecropping

Results and discussionsImpact of pluriactivity on households income : Gini Decomposition by Income Source

Source Sk Gk Rk Share % Change

inc_agr 0.4769 0.6052 0.7901 0.4369 -0.0400inc_liv 0.0172 0.9722 0.5007 0.0160 -0.0012inc_pech 0.0507 0.9742 0.8367 0.0791 0.0285inc_agr_wage 0.0125 0.9852 0.4960 0.0117 -0.0008inc_AGR 0.5572 0.6091 0.8361 0.5437 -0.0134inc_nonagr 0.1102 0.8659 0.5937 0.1085 -0.0017inc_nonagr_wage 0.3327 0.7303 0.7471 0.3478 0.0151inc_NONAGR 0.4428 0.6734 0.7986 0.4563 0.0134Total income 0.5219

• The distribution of income in the absence of non-farm income is more unequal : nonfarm

income decreases income inequality among households.

• Farm income and non-farm income are substitutes, as the highest Gini coefficient of non-

farm income corresponds to the lowest global income

Key findings• Analyzing pluriactivity of Senegalese rural households allowed to

understand the underpinnings of this behavior: Pluriactivity is essential for the survival of Senegalese rural households : Pluriactivity’ s

net effect is to lower disparities in income distribution among rural households

Pluriactivity does not only develop in areas with disadvantaged agriculture: In rainfed

areas a “survival pluriactivity” ; in irrigated areas a “ pluriactivity of opportunity”.

To increase rural household income the choice is on non-agricultural activities and not

on increasing production capacities for various reasons (lack of land, the moral hazard

problem with external labor, access to funding)

Rural populations in their pluriactivity strategy do not intend to abandon agriculture

Some poor households may be prevented from adopting pluriactivity as a strategy due to

high entry barriers for nonfarm activities.

Conclusion and Policy implications

• Rural employment programs must take into account agroecological differences

• Nonfarm rural activities are important to Senegalese rural households.

Despite positive general trends, its level of development is low. At present, the

non-farm sector in Senegal is characterized by a high level of self-employment,

the supply of small services, and precariousness of employment.

• Developing agricultural value chains may be a viable option for policymakers

to improve the potential for job creation and income generation

• Smart policies that lower existing barriers to entry to gainful agricultural and

non agricultural activities: projections about the likely speed of land/farm

consolidation should be revised downwards. Also adapted microfinance

strategies should be targeted to enable to overcome entry barriers.

THANK YOU