McCulloch, NeilWeisbrod, JulianTimmer, C. Peter2012-06-062012-06-062007-03https://hdl.handle.net/10986/7217Most poor people in developing countries still live in rural areas and are primarily engaged in low productivity farming activities. Thus pathways out of poverty are likely to be strongly connected to productivity increases in the rural economy, whether they are realized in farming, in rural nonfarm enterprises, or by way of rural-urban migration. The authors use cross-sectional data from the Central Statistical Board for 1993 and 2002, as well as a panel data set from the Indonesia Family Life Survey for 1993 and 2000, to show which pathways out of poverty were most successful over this period. The findings suggest that increased engagement of farmers in rural nonfarm enterprises is an important route out of rural poverty, but that most of the rural agricultural poor that exit poverty still do so while remaining rural and agricultural. So changes in agricultural prices, wages, and productivity still play a critical role in moving people out of poverty.CC BY 3.0 IGOAGRICULTURAL ACTIVITIESAGRICULTURAL DEVELOPMENTAGRICULTURAL EMPLOYMENTAGRICULTURAL GROWTHAGRICULTURAL OUTPUTAGRICULTURAL PRICESAGRICULTURAL PRODUCTIVITYAGRICULTURAL PRODUCTIVITY GROWTHAGRICULTURAL SECTORAGRICULTURAL SECTORSAGRICULTURAL TECHNOLOGIESAGRICULTURAL WORKERSAVERAGE INCOMESCOMMERCIAL FARMERSCOMMERCIAL FARMSCONSUMER PRICE INDEXCONSUMERSCONTRACEPTIVE USEDATA SETSDEBTDEMOGRAPHIC CHANGESDESCRIPTIVE STATISTICSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDIVERSIFICATIONECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHEMPIRICAL EVIDENCEEMPIRICAL LITERATUREEMPIRICAL RESULTSEMPIRICAL WORKEMPLOYMENT IN AGRICULTUREEMPLOYMENT OPPORTUNITIESEXPORTSFACTOR ENDOWMENTSFAMILY MEMBERSFARM ACTIVITIESFARM EMPLOYMENTFARM OUTPUTFARM PRODUCTIVITYFARM SECTORFARM WORKFARM WORKERSFARMERFARMERSFARMING ACTIVITIESFERTILITYFOOD PRICESFOOD SHAREGLOBAL DEVELOPMENTGREEN REVOLUTIONHEADCOUNT POVERTYHEALTH CAREHEALTH INSURANCEHIGH GROWTHHOUSEHOLD HEADHOUSEHOLD INCOMEHOUSEHOLD LEVELHOUSEHOLD POVERTYHOUSEHOLD SIZEHOUSEHOLD SURVEYHUMAN CAPITALILLNESSIMPACT ON POVERTYIMPACT ON POVERTY REDUCTIONIMPROVING GROWTHINCOMEINCOME DATAINCOME GROWTHINDIVIDUAL INCOMESINEQUALITYINSURANCEINVESTMENT CLIMATELABOR FORCELABOR MARKETLONG-RUN IMPACTMEAN INCOMEMILLENNIUM DEVELOPMENT GOALSMODERNIZATIONMULTIPLIERSNON-FARM OUTPUTNUMBER OF CHILDRENNUMBER OF WORKERSOLD AGEOPEN ECONOMIESOPPORTUNITY COSTSOUTPUT GROWTHPER CAPITA EXPENDITUREPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL TURMOILPOORPOOR ECONOMIC GROWTHPOOR PEOPLEPOORER REGIONSPOPULATION DENSITYPOPULATION GROWTHPOVERTY ALLEVIATIONPOVERTY CHANGESPOVERTY DYNAMICSPOVERTY GAPPOVERTY INDEXPOVERTY LINEPOVERTY LINESPOVERTY REDUCTIONPOVERTY STATUSPRO-POORPRO-POOR GROWTHPRODUCTIVITY INCREASESPROGRESSPURCHASING POWERRAPID GROWTHREAL INCOMEREAL INCOMESREDUCING POVERTYREDUCTION IN POVERTYREDUCTION OF POVERTYRELATIVE IMPORTANCERURALRURAL AREASRURAL DEVELOPMENTRURAL ECONOMIC GROWTHRURAL ECONOMYRURAL EMPLOYMENTRURAL FARMRURAL FARMERSRURAL INCOMERURAL INVESTMENTRURAL POORRURAL POVERTYRURAL REGIONSRURAL VILLAGESRURAL WORKERSSCHOOLINGSERVICE PROVISIONSEXSHARP REDUCTIONSKILLED WORKERSSOCIAL SERVICESSPOUSESQUARED POVERTY GAPSTRUCTURAL TRANSFORMATIONSUBSISTENCESUBSISTENCE FARMERSTOTAL POVERTYURBAN AREASURBAN MIGRATIONURBAN POORURBAN WORKERSURBANIZATIONVILLAGE LEVELWAGESWORKFORCEWorld Bank10.1596/1813-9450-4173