The Effect of Women's Empowerment on Poverty Reduction: Mediating Role of Non‐Farm Participation

ABSTRACT The relations between women's empowerment (WE) and poverty reduction have been extensively discussed in the developing world against the backdrop of the 2030 Agenda for Sustainable Development. This article quantitatively analyses the effect of WE on household poverty and the mediation role of women's non‐farm participation through which WE affects household poverty, using the surveyed data of 1239 rural households in Western China in 2021. Structural equation modelling (SEM) is conducted using Stata software, with WE specified as a latent variable. The results indicate that WE has significantly reduced household poverty in Western China. Specifically, empowering women has significantly increased women's non‐farm participation; women's non‐farm participation has significantly contributed to household poverty reduction as well. Additionally, the study highlights a significant mediation effect of women's participation in non‐farm activities in the relationship between WE and household poverty. Policy implications emphasize the importance of expanding public services and providing tailored educational and vocational training programs for women, as well as fostering a gender‐responsive environment that is favourable for women to fully release their potential through non‐farm participation. These strategies are essential for enhancing women's participation in non‐farm activities and further reducing household poverty through WE.