ABSTRACT
The non-farm rural sector has been an important area of research in economic development literature. Two main areas of analysis can be identified: (i) the study of inter-linkages between agriculture and the non-farm sector as a whole or within a region of a country; and (ii) the analysis of the role played by the non-farm sector in the process of rural development. An important line of research has been the analysis of income diversification strategies carried out by rural households (Islam, 1997). This latter approach will be explored in this chapter using household survey data from the Peruvian Andes.
