Rural development and the expansion of non‑agricultural activities in the Brazilian Amazon

Abstract

This paper analyzes the employment and income dynamics of rural families in Brazil's North Region, the main representative of the Brazilian Amazon. We use information from the National Household Sample Survey between 2004 and 2015 to create a typology of families based on the members' occupation in agricultural and non-agricultural activities. We hypothesize that the recent increase in employment and income was strongly associated with non-agricultural activities, reproducing the dynamics observed in other developing countries and Brazil's more developed regions. The results highlight that, differently from the rural exodus observed in the other regions of the country, the number of rural households increased in the North Region, attracted by the expanding non-agricultural occupations. As a result, the importance of earnings from non-agricultural activities and non-labor (pensions, cash transfers, among others) to family income has increased considerably, especially among self-employed family farmers. The final discussion highlights the relevance of non-agricultural activities for public policies to increase income in less developed rural areas.