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Abstract
Changes in rural Myanmar have been widely discussed by many researchers recently, but the work on the non-farm sector is limited. This paper empirically investigates the extent and the determinants of household diversification in the non-farm sector in rural Myanmar through a nationwide survey (MLCS 2016/17). We find evidence of households that participate significantly in non-farm activities. The key findings are as follows: First, more than half of rural households engage in diverse non-farm activities which contribute more than one-third of total household income. Despite generating large participation, the non-farm sector is informal and has yet to reach its full capacity. Second, diversification is broad-reaching from rich to poor; however, the rate of diversification differs with wealthier households dominating the non-farm sector. Third, land constraints, larger household size, education level, and gender of household head all appear to largely affect diversification.