Participation in rural off-farm activities (outside a household's own farm)
is one of the livelihood strategies among poor rural households in many developing
countries. One component of off-farm activities accessible to the very poor is wage
labor because it does not require any complementary physical capital. A household’s
ability to participate in the rural labor market depends on the characteristics of the
household itself and the local labor markets conditions. This study examines the
factors that determine the number of households supplying labor to a particular rural
local labor market in rural areas of Tanzania and the share of labor income in total
cash income. The study finds that education level, availability of land, and access to
economic centers and credit are the most important factors in determining the
number of households that participate in a particular rural local labor market and the
share of labor income in total cash income.