This paper critically assess the belief, widely shared by policy-makers, that the rural poor
in developing countries are small-scale subsistence farmers, supposedly making a living by working
their own land with the help of family members. Such belief has profound policy implications, as it
results in the focus by poverty reduction strategies on “making the market work for the poor” (who
are understood to be exclusively producers). This paper shows that such a policy focus is highly
problematic as it excludes millions of poor people in developing countries for whom working for
other people is the main source of livelihood. The paper takes two African countries, Ethiopia and
Rwanda, to show how official statistics suggests the insignificance of rural wage labour and the
centrality of small-scale farming to the livelihoods of the poor. Such picture is then contrasted with
the findings of primary research conducted in both countries, which shows the centrality of rural
wage labour to the poorest. Having discussed the reasons for such a striking account of rural poverty
and employment, the reports documents the policy neglect of rural labour markets by policy-makers
in both countries. The paper concludes by stressing the urgency of making the rural labour market
work for the poor a policy priority and by outlining key areas for intervention by policy makers.