In rural India, employment growth in the non-farm economy has been taken as a solution to various problems such as unemployment, poverty, rural /urban income differentials etc. Therefore, there is a growing feeling of urgency for enlarging the ambit of non-farm activities. Forces that have given fillip to non-farm sector are broadly classified in two categories: One, factors that attract workers to new opportunities in non-farm sector and two, factors that drive workers away from their present agricultural occupation out of despair or under duress. These are called as demand-pull and distress-induced factors respectively. The basic objective of our study was to examine the possible causes of employment growth in non-farm activities viz. (i) whether it was the demand-pull factors exercised by agricultural growth (ii) distress-push factors that impelled them to undertake non-farm activity because they failed to find any employment in the farm sector; or (iii) it was the result of factors external to the rural economy. The state specific data give us reasons to believe that the employment activities of rural non-farm workers were dictated by distress conditions. The survey results further strengthened the perception of broad distress-induced circumstances of non-farm workers
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
7792.
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Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
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