Rural non-agricultural employment (RNAE) is being increasingly emphasized as a potential pathway out of rural poverty for people who are unable to secure their income in agriculture. Although average earnings in the rural non-agricultural sector are higher than in agriculture, it is unclear...

This paper analyses the role of government effectiveness in the determination of informal employment. A theoretical model is developed, in which local governance and worker skill level are assumed to influence the decision of the worker whether to seek employment in the formal or informal...