Ecuador's Rural Nonfarm Sector as a Route Out of Poverty 1904. The nonagricultural rural sector represents a potentially important route out of poverty in Ecuador.
Poverty declines as the share of income from nonagricultural sources rises.
Nonagricultural employment and earnings are positively associated with better education and infrastructure access. Poverty could be expected to fall substantially with expansion in nonfarm sectors such as construction, transport, commerce, and services. Lanjouw analyzes a recent household survey for Ecuador to assess the role of the nonagricultural rural sector in reducing poverty. That sector accounts for roughly 40 percent of rural incomes in Ecuador, three-fourths of which comes from nonagricultural enterprises as opposed to wage labor. The sector provides employment to nearly 40 percent of men and 50 percent of economically active women.