Using nationally-representative data from 14 developing countries, this paper explores rural wage employment and its potential as a mechanism for improving the well being of the rural population. The analysis suggests that the sector of employment (agricultural or non-agricultural) and the overall household livelihood strategy appear to be of limited importance in determining whether a household uses wage employment as a pathway out of poverty. Rather, highproductivity wage employment appears to be linked to the underlying assets of the household and its individual members. In particular, the evidence points to educational and infrastructure investment as critical for providing opportunities in the labour market that lead to higher wages. The analysis also suggests that gender is very important in participation in labour markets as well as wages earned in those markets indicating that special attention be given to the gender consequences of any employment policy.