Non-Agricultural Activities and Income Distribution in Rural Java∗

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Abstract
This paper addresses two problems relating to non-agricultural employment in rural Java, First, four possible determinants of non-agricultural income at the village level are examined: agricultural income, agricultural density, land distribution and location. Of these, the first two appear most significant. Second, the relationship between non-agricultural activities and rural income distribution is evaluated. In relative terms, income from non-agricultural activities is most important for landless and small farm households, although in absolute terms, large farmers derive sizeable income from this source. The evidence is that non-agricultural income serves to moderate income differences within villages.

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