Non-Agricultural Activities and Income Distribution in Rural Java∗

∗ The author thanks Kalikit Ngandji, E. Wilandari Supardan, Hermine Weijland and two anonymous referees for constructive comments on an earlier version of the paper.

Abstract

This paper addresses two problems relating to non-agricultural employment in rural Java, First, four possible determinants of non-agricultural income at the village level are examined: agricultural income, agricultural density, land distribution and location. Of these, the first two appear most significant. Second, the relationship between non-agricultural activities and rural income distribution is evaluated. In relative terms, income from non-agricultural activities is most important for landless and small farm households, although in absolute terms, large farmers derive sizeable income from this source. The evidence is that non-agricultural income serves to moderate income differences within villages.

∗ The author thanks Kalikit Ngandji, E. Wilandari Supardan, Hermine Weijland and two anonymous referees for constructive comments on an earlier version of the paper.

Notes

∗ The author thanks Kalikit Ngandji, E. Wilandari Supardan, Hermine Weijland and two anonymous referees for constructive comments on an earlier version of the paper.