Non-agricultural earnings in peri-urban areas of Tanzania: evidence from household survey data

This study draws on purposive survey data of approximately 600 households i n peri-urban Tanzania to describe the degree and nature of non-farm diversi fication in these settings. With the exception of relatively dynamic cities such as Dar es Salaam and Arusha, overall nonfarm incomes shares are not u nambiguously higher than in rural areas as a whole. Non-farm income shares rise sharply and monotonically with quintiles defined in terms of per capit a food consumption. In that sense the sector appears to offer an important route out of poverty. The evidence suggests that education, and access to i nfrastructure, are important determinants of non-farm incomes in peri-urban areas. Women appear to be poorly placed vis vis the non-farm sector, even after controlling for education, age and other characteristics. Kinship and tribal affinities, and time devoted to communal activities, appear to dete r entrepreneurial activity and non-farm employment, but trust in officials and public servants and strong heterogeneous village associations, are impo rtant in stimulating non-farm activity. (C) 2001 Elsevier Science Ltd. All rights reserved.