 Welfare Effects of Diversification on Farm Households in CambodiaEconomics Bulletin, 2015, vol. 35, issue 4, 2645-2663 Abstract: This paper analyzes the effects of diversifying into off-farm activities on farm household welfare in terms of household food consumption in rural Cambodia. An endogenous switching model is applied to data from the 2009 Cambodia Socio-Economic Survey to assess whether farm households make food consumption gains from participation in salary-paid employment and self-employment. This model accounts for selection bias arising from unobserved factors that potentially determine both off-farm participation and food consumption. It also controls for structural differences between participants and nonparticipants in off-farm activities that most previous studies do not account for. The results reveal that by participating in salary-paid employment, farm households make positive gains in food consumption per capita, then supporting the hypothesis that engagement in salary-paid employment has positive effects on farm households' welfare. However, per capita food consumption gains from participation in self-employment are negative, suggesting that the salary-paid employment has more important role in promoting household welfare in rural communities than does the self-employment. Keywords: off-farm activities; salary-paid employment; self-employment; household welfare; endogenous switching model; Cambodia (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-15-00372 Access Statistics for this article More articles in Economics Bulletin from AccessEcon |
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