Determinants of Rural Labour Market Participation: A Qualitative Review of Global Evidence with Policy Insights for Agricultural Transformation

Vollständiger Abstract

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This paper synthesises the empirical literature on the key determinants of rural labour force participation through a comprehensive review of global evidence spanning the 1960s to the mid-2020s. Drawing on studies from both developing and developed countries, the review addresses two central research questions: (i) the determinants of on-farm labour market participation, and (ii) the determinants of off-farm labour market participation. Each research question is accompanied by detailed tabular summaries classifying studies by methodology, location, and significant explanatory variables. The review finds that human capital variables, particularly education and work experience, age, household structure, farm production characteristics, financial factors, and locational attributes are consistent determinants of both on-farm and off-farm participation decisions. Emerging evidence further identifies digital technology access, climate-induced shocks, and structural transformation pressures as increasingly salient forces reshaping rural labour allocation. Despite heterogeneous conditions, divergent methodologies, and sometimes conflicting results, it is possible to assess the relative significance and direction of key determinants. The paper concludes with policy insights on how to strengthen rural labour markets in support of agricultural transformation, poverty reduction, and inclusive rural development.