Working Paper

Spillovers from Off-farm Self-employment Opportunities in Rural Niger

Agricultural households in Niger face constraints that may hinder agricultural production and
threaten food security. A rural exodus is also resulting from a lack of formal and decent wage
employment. The way to enhance agricultural production and improve food security while at
the same time increase employment is still an important policy question in rural Niger. This study
assesses the effects of off-farm self-employment opportunities on expenditures for agricultural
inputs and on food security using the potential outcome framework for treatment effects. The
study finds that farm and non-farm related factors determine off-farm self-employment
opportunities in rural Niger. Also, participation in self-employment increases agricultural
expenditures on purchased inputs and hired labour but decreases the propensity to hire labour.
Self-employment opportunities favour food accessibility without having any additional effect on
food availability and food utilisation. The results confirm that the policy of promoting the nonfarm
sector can be harmonious with the development of the agricultural sector. There is a scope
to increase or create favourable conditions for the development of the non-farm sector in rural
Niger.