Explanation of Off-farm Work Participation in Rural Pakistan

The role of off-farm employment in augmenting household farm income in the developing countries is of special significance, given the land and water resource constraints and the alarming, rate of population growth. This study focuses on the rural household in Pakistan in an effort to understand the economic and social factors that affect off-farm work participation of male household members in the rural areas. The data are derived from the cross-section survey carried out by the International Food Policy Research Institute for the year 1986-87 as a panel study of rural households. The parameters of the model are estimated using the standard maximum likelihood Tobit approach. Most of the results are consistent with the findings in other developing countries. The results confirm that the level of human capital plays an important role in making decisions providing for labour in off-farm work activities. The study also highlights the fact that farm-to-market roads and village electrification are some of the development strategies vital to encourage participation in off-farm work.