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Rural Employment Diversification in India: Trends, Determinants and Implications on Poverty

Author

Listed:
  • Kumar, Anjani
  • Kumar, Sant
  • Singh, Dhiraj Kumar
  • Shivjee

Abstract

This paper has studied rural employment diversification in India and across major states using NSSO data at household level for the period 1983 and 2009-10. Factors affecting rural employment diversification towards non-farm sector have also been studied. Analysis has shown that the non-farm sector has consistently grown over time and employed nearly one-third of the rural workforce in 2009-10, as compared to merely one-fifth in 1983 at all-India level. The similar trend is seen across major states as well, though the pace and pattern varied widely. In providing employment to rural workforce, increasing dominance of crop production, followed by animal husbandry was observed across major states during 2009-10. The share of fishery and forestry was negligible in providing employment to the rural workforce. The study has revealed that the increasing rural non-farm employment has positive and significant effect on reducing rural poverty at all-India level. A positive link between income and employment has also been observed in diversifying towards horticultural activities. A well designed area-specific programme should be evolved to help improve skill of rural workforce, which in turn would benefit in getting employment in the non-farm sector.

Suggested Citation

  • Kumar, Anjani & Kumar, Sant & Singh, Dhiraj Kumar & Shivjee, 2011. "Rural Employment Diversification in India: Trends, Determinants and Implications on Poverty," Agricultural Economics Research Review, Agricultural Economics Research Association (India), issue 2011.
  • Handle: RePEc:ags:aerrae:119386
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    File URL: http://purl.umn.edu/119386
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    References listed on IDEAS

    as
    1. Kumar, Anjani, 2009. "Rural Employment Diversification in Eastern India: Trends and Determinants," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(1).
    2. Praduman kumar & Anjani kumar & Surabhi Mittal, 2004. "Total Factor Productivity of Crop Sector in the Indo-Gangetic Plain of India: Sustainability issues revisited," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 39(1), pages 169-201, January.
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    Citations

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    Cited by:

    1. Singh, Shiv Raj & Datta, K.K., 2013. "Future of Smallholders in the Indian Dairy Sector – Some Anecdotal Evidence," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(2).
    2. Venkatesh, P., 2013. "Recent Trends in Rural Employment and Wages in India: Has the Growth Benefitted the Agricultural Labours?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2013).
    3. Rodríguez-Pose, Andrés & Hardy, Daniel, 2015. "Addressing poverty and inequality in the rural economy from a global perspective," LSE Research Online Documents on Economics 63257, London School of Economics and Political Science, LSE Library.
    4. Maitreyi Bordia Das & Soumya Mehta & Emcet Oktay Tas, 2015. "Scaling the Heights: Social Inclusion and Sustainable Development in Himachal Pradesh," Working Papers id:6936, eSocialSciences.
    5. Nithyashree, M.L. & Pal, Suresh, 2013. "Regional Pattern of Agricultural Growth and Rural Employment in India: Have Small Farmers Benefitted?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2013).

    More about this item

    Keywords

    Rural employment; Employment diversification; Crop sector; Agricultural and Food Policy; J21; J23; O15; O18;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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