SDGs: Indicator 2.3.2

Forest sector governance reform is frequently promoted as a policy tool for achieving favorable livelihood outcomes in the low income tropics. However, there is a dearth of empirical evidence to support this claim, particularly at the household level. Drawing on the case of a major forest sector governance reform implemented in Uganda in 2003, this study seeks to fill that gap.

The rural economy of developing
countries has long been regarded as synonymous with
agriculture but in recent years this view has begun to
change. Such diverse activities as government, commerce, and
services are now seen as providing most income in rural
households. Applying decomposition analysis to two new
nationally representative sets of household data from Egypt
and Jordan, the author examines how different sources of

Theoretical work has shown that
nonlinear dynamics in household incomes can yield poverty
traps and distribution-dependent growth. If this is true,
the potential implications for policy are dramatic:
effective social protection from transient poverty would be
an investment with lasting benefits, and pro-poor
redistribution would promote aggregate economic growth. The
authors test for nonlinearity in the dynamics of household

This paper addresses three areas of the rural labor market-employment, labor wages, and agriculture producer incomes. Findings show that the poor allocate a lower share of their labor to farm sectors than the nonpoor do, but still around 70 percent work in agriculture, and the vast majority of rural workers are engaged in the informal sector. When examining nonfarm employment in rural Argentina, findings suggest that key determinants of access to employment and productivity in nonfarm activities are education, skills, land access, location, and gender.

Nonfarm activity plays an increasingly important role in rural household income. Based on data from the Living Standards Measurement Study in the provinces of Hebei and Liaoning, the authors study the distribution of nonfarm income in rural China. First, they assume nonfarm income as an exogenous transfer to total income to decompose the Gini index. Second, they assume nonfarm income as a potential substitute for farm income to take household choices into account and simulate household income.