Boda-bodas Rule: Non-agricultural Activities and Their Inequality Implications in Western Kenya

Jann Lay, George Michuki M'Mukaria and Toman Omar Mahmoud
Authors registered in the RePEc Author Service: Toman Barsbai

No 48, GIGA Working Papers from GIGA German Institute of Global and Area Studies

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.

Keywords: income diversification; non-agricultural activities; inequality; poverty; sub-Saharan Africa; Kenya (search for similar items in EconPapers)
JEL-codes: I31 O17 Q12 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Boda-bodas rule: Non-agricultural activities and their inequality implications in Western Kenya (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gigawp:48

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