The impact of sunk costs and path dependencies on nonfarm employment of smallholder rubber farmers: Evidence from Southwest China

Key Points

• Nonfarm employment among smallholder rubber farmers is significantly influenced by sunk costs and path dependencies.
• Costs previously incurred can strongly affect current employment decisions, manifesting in decreased opportunities.
• Observational analysis across various smallholder communities highlights socioeconomic factors affecting employment choices.
• Understanding these dynamics supports enhanced rural development strategies targeting smallholder farmers' resilience.