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Push and (or) Pull? Drivers of Labour Force Participation in Indian Agriculture

Author

Listed:
  • Amit Kundu

    (Jadavpur University)

  • Sangita Das

    (Jadavpur University)

Abstract

Labour force participation rate in the Indian agricultural sector is gradually declining. This paper wants to investigate the possible causes behind it. Here both possible push and pool factors behind this decline are considered simultaneously. Initially, on the basis of 70th round NSSO data on agricultural households, it is tested whether or not marginal farmers are enjoying comparative advantage during the time of getting employment in the agricultural sector as agricultural labourer. But as ‘decline’ is a flow concept, to investigate possible reasons behind this decline, we have considered six rounds state-level NSSO data on Employment Unemployment Survey of India and its 20 major states. Applying fixed effect panel data regression technique after considering state-specific possible factors, it is found that gradual decline of per capita land holdings is the major push factor responsible for gradual decline of labour force participation rate in Indian agriculture. Apart from that, other push factors like hike of real agricultural wage rate, improvement in education level of the agricultural households and pull factor like hike of non-farm real wage, employment opportunities in construction and other non-farm activities are found significant for gradual decline of labour force participation rate in Indian agriculture.

Suggested Citation

  • Amit Kundu & Sangita Das, 2019. "Push and (or) Pull? Drivers of Labour Force Participation in Indian Agriculture," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(3), pages 413-430, September.
    • Handle: RePEc:spr:ijlaec:v:62:y:2019:i:3:d:10.1007_s41027-019-00182-9
    DOI: 10.1007/s41027-019-00182-9
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    References listed on IDEAS

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    Cited by:

    1. Kundu, Amit & Goswami, Pubali, 2020. "Causes behind Tenancy Contract among the Marginal Farmers of West Bengal, India and Its’ Impact on their Livelihood," MPRA Paper 112939, University Library of Munich, Germany, revised 01 Feb 2022.
    2. Kiros Tsegay & Hongzhong Fan & AM Priyangani Adikari & Hailay Shifare, 2021. "Does gender matter for household livelihood diversification in Ethiopia rural areas?," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 221-232, September.
    3. R Chitra & N L Balasudarsun & M Sathish & R Jagajeevan, 2023. "Supply chain modelling in organic farming for sustainable profitability," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(6), pages 255-266.

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    More about this item

    Keywords

    Agricultural labourers; Pull factors; Push factors; Panel data analysis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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