Off-Farm Employment and Rural Household Welfare: Evidence from Northern Uganda

This study examines the role of off-farm employment in improving rural household welfare in Northern Uganda. Using cross-sectional data from 826 rural households, the study applies the Heckman two-step selection model to address potential selection bias in estimating the impact of off-farm participation on household food expenditure. The results show that access to education, household size, and proximity to markets significantly influence participation in off-farm employment. Participation in off-farm activities is found to have a positive and significant effect on household food expenditure, suggesting improved food security and welfare outcomes. These findings highlight the importance of income diversification strategies in rural areas. The study recommends policies that enhance access to education, rural infrastructure, and labor market opportunities to support off-farm employment and strengthen rural livelihoods in Northern Uganda.