Income Strategies Among Rural Households in Mexico: The Role of Off-farm Activities

Off-farm activities generate on average more than half of farm households' incomes in the Mexican ejido sector. Participation in these activities helps reduce poverty and contributes to greater equality in the distribution of income. This paper analyzes the determinants of access to off-farm sources of income across households. We find that education plays a major role in accessing better remunerated nonagricultural employment. Adults of indigenous ethnic origin suffer from an educational lag and have less access to off-farm nonagricultural employment than non-indigenous adults at identical educational levels. The regional availability of off-farm employment strongly affects participation. In addition, women are differentially limited by distance to urban centers in their ability to gain off-farm employment.