Determinants of off-farm employment: Evidence from rural Vietnam

Abstract

The purpose of this research paper is to examine the determinants of off-farm employment in rural Vietnam using logistic regression analysis. The study is based on data from the Vietnam Access to Resources Household Survey (VARHS) conducted in 2016. The result reveals several significant determinants of off-farm employment. The age of the household head has a negative impact, suggesting that younger-headed households are more likely to participate in off-farm work. Conversely, the number of family members positively affects off-farm employment. The financial situation of the household is also found to be influential, with savings positively impacting non-farm activities, potentially driven by the desire for emergency funds. Moreover, households experiencing losses from natural shocks to agricultural income are more inclined to engage in off-farm employment as a coping strategy. Proximity to the people committee is another significant factor, as those residing closer to these committees are more likely to participate in off-farm activities, benefiting from increased access to non-farm job opportunities and community resources. Furthermore, farmers in the Red River Delta and Central Coast regions show a higher likelihood of involvement in off-farm employment. These findings shed light on the multifaceted determinants of off-farm employment in rural Vietnam, offering insights for policymakers and development strategies aimed at promoting sustainable livelihoods and income diversification in rural areas