Out-migration and the transition from farming to non-farming in Chitwan, Nepal

The purpose of this study is to understand how out-migration at the household level affects the decision to transition from farming to non-farming in the context of Chitwan, Nepal, between 1996 and 2006. Education, land size, environmental threat, and perceptions on environment are considered as moderating factors. Out-migration is expected to increase the likelihood of the transition in that financial and social remittances brought by migration would make a household to invest more in non-farming under certain conditions. Out-migration is measured at each month since February, 1996 until 2006. Two main measurements of migration at household level are tested: total duration and number of migrants. Preliminary multilevel analysis results indicate that migration has positive effect on the transition out of farming. The perception on water quality and the distance to the off-farm opportunities have significant effects on the transition as well.