Rural Nonfarm Employment and Incomes in the Eastern Himalayas

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Rural Nonfarm Employment and Incomes in the Eastern Himalayas

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Rahut, Dil Bahadur
Micevska, Maja

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Dil Bahadur Rahut

Abstract

Nonfarm activities generate on average about 60 percent of rural households? incomes in the eastern Himalayan region of India. This paper analyzes the determinants of participation in nonfarm activities and of nonfarm incomes across rural households. We present and explore an analytical framework that yields different activity choices as optimal solutions to a simple utility maximization problem. A unique data set collected in the eastern Himalayas allows us to closely examine the implications of the analytical framework. We conduct an empirical inquiry that reveals that education plays a major role in accessing more remunerative nonfarm employment. Other household assets and characteristics such as land, social status, geographical location, and credit access also play a role. --

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Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Göttingen 2007 with number 22.

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Date of creation: 2007
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Handle: RePEc:zbw:gdec07:6545

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Find related papers by JEL classification:
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

This paper has been announced in the following NEP Reports:

NEP-AGR-2007-12-01 (Agricultural Economics)
NEP-ALL-2007-12-01 (All new papers)
NEP-CWA-2007-12-01 (Central & Western Asia)
NEP-DEV-2007-12-01 (Development)

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Other versions:
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Other versions:
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Marcel Fafchamps & Forhad Shilpi, 2003. "Cities and Specialization: Evidence from South Asia," Economics Series Working Papers 139, University of Oxford, Department of Economics. [Downloadable!]
Other versions:
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Other versions:
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