Decent Rural Employment in a Specialised and a Diversified Production System in Tanzania

The agricultural sector in developing countries plays a vital role in food security as well as providing employment opportunities to the rural population. This study examines how decent quality of rural employment can be associated with technical efficiency of agricultural production of smallholder farmers in Tanzania. While labour is considered an input in the production process, various forms of labour are rarely measured in the context of employment quality. Using a latent-class stochastic frontier model, two types of farming systems are identified: a specialised crop system and a diversified farming system. The study found child labour to be significantly contributing to the inefficiency of agricultural production only in the diversified farming system, while precarious employment contributed to the inefficiency in both farming systems. Based on these findings policymaking that targets decent employment in developing countries needs to account for differences in farming systems.