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Role of Non-Farm Sector in Sustaining Rural Livelihoods in Punjab

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  • Pavithra, S.
  • Vatta, Kamal

Abstract

The role of non-farm sector has been examined in promoting rural livelihoods in the state of Punjab, especially of the landless and marginal farm households who are often poor and derive a sizeable proportion of their income from non-farm activities. The non-farm income sources have been found to contribute towards reduction in income inequality. Owing to their lower level of education, lack of skills and capital, these households are engaged in relatively less-remunerative activities. The determinants of participation in non-farm activities have been identified and it has been found that larger family size, higher dependency ratio, small landholdings and social backwardness motivate farm households to participate more in the non-farm sector. Improvement in education and skills and creation of productive assets are crucial for enhancing their participation in more remunerative income-generating non-farm activities.

Suggested Citation

  • Pavithra, S. & Vatta, Kamal, 2013. "Role of Non-Farm Sector in Sustaining Rural Livelihoods in Punjab," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2).
    • Handle: RePEc:ags:aerrae:162146
    DOI: 10.22004/ag.econ.162146
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    References listed on IDEAS

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    1. Verma, Binoy N. & Verma, Neelam, 1995. "Distress Diversification from Farm to Non-Farm Rural Employment Sector in the Eastern Region," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 50(3).
    2. Kumar Bhaumik, Sankar, 2007. "Diversification of Employment and Earnings by Rural Households in West Bengal," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 62(4), pages 1-22.
    3. Birthal, Pratap S. & Singh, M.K., 1995. "Structure of Rural Income Inequality: A Study in Western Uttar Pradesh," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 50(2).
    4. Barrett, Christopher B. & Bezuneh, Mesfin & Clay, Daniel C. & Reardon, Thomas, 2001. "Heterogeneous Contraints, Incentives, and Income Diversification Strategies in Rural Africa," Working Papers 179567, Cornell University, Department of Applied Economics and Management.
    5. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    6. Vatta, Kamal & Garg, B.R. & Sidhu, M.S., 2008. "Rural Employment and Income: The Inter-household Variations in Punjab," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 21(2).
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    Cited by:

    1. Hui Xiang & Ya Hui Wang & Qi Qi Huang & Qing Yuan Yang, 2020. "How Much Is the Eco-Efficiency of Agricultural Production in West China? Evidence from the Village Level Data," IJERPH, MDPI, vol. 17(11), pages 1-15, June.
    2. Hui Xiao & Jianxiu Xiao & Fangting Xie, 2022. "Impact Assessment of Farmland Lease-Out on Rural Households’ Livelihood Capital and Livelihood Strategy," Sustainability, MDPI, vol. 14(17), pages 1-22, August.

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