New methodology for producing employment microsimulations is introduced, with a focus on
farms and household nonfarm enterprises. Previous simulations have not dealt with the issue of
reduced production in farm and nonfarm household enterprises when household members are
placed in paid employment. In this paper, we present a method for addressing the trade-off
between paid employment and the farm and nonfarm business activities individuals may already
be engaged in. The implementation of the simulations for Ghana and Tanzania is described and
the quality of the simulation results is assessed.