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As rural nonfarm activities grow in developing countries, less attention is being paid to the opportunities they may provide for women. The purpose of this study is to examine the gender-differentiated impact of nonfarm diversification strategies in rural Senegal.

This study uses data collected from the Senegalese poverty monitoring survey and employs an instrumental variable (IV) approach and a multinomial endogenous treatment model to investigate the extent to which diversification strategies lead to improved outcomes for rural women and their households.

While nonfarm diversification is a male-dominated livelihood strategy, rural women make the most of it, regardless of whether they diversify into low- or high-return nonfarm activities. At the individual level, diversification improves rural women’s well-being through large income-increasing effects and higher empowerment but has no effect on rural men’s well-being. At the household level, the authors find that, when only women diversify, households have lower per capita income but are less likely to be food insecure than when only men or both genders diversify.

This study is based on cross-sectional data, making it impossible to examine the dynamic effects of nonfarm diversification strategies on well-being outcomes.

This study contributes to the current literature on rural livelihood diversification. While much attention has been paid to the feminization of agriculture, remarkably little is known about the expanding role of rural women in the nonfarm sector.