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Land-use change and livelihoods of non-farm households: the role of income from employment in oil palm and rubber in rural Indonesia

Author: Bou Dib, J.
Author: Krishna, V.V.
Author: Alamsyah, Z.
Author: Qaim, M.
Year: 2018
ISSN: 2197-6244
Abstract: Many tropical regions are experiencing massive land-use change that is often characterized by an expansion of oil palm at the expense of forests and more traditional forms of agricultural cropping. While implications of such land-use change for the environment and for local farm households were examined in previous research, possible effects on the livelihoods of non-farm households are not yet well understood. This study analyzes the role of different types of agricultural and nonagricultural employment income for non-farm households in rural Jambi, one of the hotspot regions of Indonesia’s recent oil palm boom. Data from a recent survey show that employment in rubber and oil palm are important livelihood components for non-farm households. Employment in oil palm is more lucrative than employment in rubber, so involvement in the oil palm sector as a laborer is positively associated with total household income. Regression models show that whether or not a household works in oil palm is largely determined by factors related to migration background, ethnicity, and the size of the village area grown with this crop. These results suggest that further expansion of the oil palm area will likely benefit non-farm households through gains in employment income. As non-farm households belong to the poorest segments of the rural population, these benefits should not be ignored when designing policies towards sustainable land use.
Format: PDF
Language: English
Publisher: University of Goettingen
Serie: EFForTS Discussion Paper ; No. 21
Copyright: CIMMYT manages Intellectual Assets as International Public Goods. The user is free to download, print, store and share this work. In case you want to translate or create any other derivative work and share or distribute such translation/derivative work, please contact indicating the work you want to use and the kind of use you intend; CIMMYT will contact you with the sutable license for that purpose.
Type: Book
Place of Publication: Goettingen (Germany)
Pages: 29 pages
Country of Focus: INDONESIA
Agrovoc: OIL PALMS
Agrovoc: RUBBER
Agrovoc: LAND USE
Agrovoc: INCOME

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  • Socioeconomics
    Including topics such as farming systems, markets, impact & targeting, innovations, and GIS

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