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The dynamics of rural non-farm employment in India

Author

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  • Alok Kumar

    (University of Victoria)

  • Kam Shergill

    (University of Victoria)

Abstract

This paper analyzes the dynamics of the rural non-farm employment in the fifteen major states of India by using panel data analysis for the period 1972–2010. The analysis indicates that there are significant gender differences in the factors affecting the level and the growth of rural non-farm employment. The level of urbanization, the rural literacy rate and the rural unemployment rate have a significant positive effect on the incidence of non-farm employment for male workers. For female workers, agricultural productivity and the incidence of rural poverty have a significant positive effect. There is evidence of convergence in the incidence of rural non-farm employment for both male and female workers, indicating that states with initially low incidence of rural non-farm employment experienced a higher growth rate in the rural non-farm employment than states with initially high incidence.

Suggested Citation

  • Alok Kumar & Kam Shergill, 2017. "The dynamics of rural non-farm employment in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(4), pages 613-624, December.
    • Handle: RePEc:spr:ijlaec:v:60:y:2017:i:4:d:10.1007_s41027-018-0112-9
    DOI: 10.1007/s41027-018-0112-9
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    References listed on IDEAS

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    1. Ranis, Gustav & Stewart, Frances, 1993. "Rural nonagricultural activities in development : Theory and application," Journal of Development Economics, Elsevier, vol. 40(1), pages 75-101, February.
    2. Alok Kumar, 2008. "Capital Tax, Minimum Wage, and Labor Market Outcomes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 133-154, January.
    3. Hazell, Peter B. R. & Haggblade, Steven, 1991. "Rural-Urban Growth Linkages in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 46(4), October.
    4. Alok Kumar & Kam Shergill, 2014. "The Dynamics of Rural Non-farm Employment in India: Gender, Agricultural Productivity, and Literacy," Department Discussion Papers 1403, Department of Economics, University of Victoria.
    5. Hymer, Stephen H & Resnick, Stephen, 1969. "A Model of an Agrarian Economy with Nonagricultural Activities," American Economic Review, American Economic Association, vol. 59(4), pages 493-506, Part I Se.
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    Cited by:

    1. Alok Kumar, 2019. "Subjective Income Expectations and Risks in Rural India," Journal of Developing Areas, Tennessee State University, College of Business, vol. 53(3), pages 11-25, Summer.
    2. Alok Kumar, 2019. "Subjective Income Expectations and Risks in Rural India," Journal of Developing Areas, Tennessee State University, College of Business, vol. 53(3), pages 11-25, Summer.

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