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The Dynamics of Rural Non-farm Employment in India: Gender, Agricultural Productivity, and Literacy

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Abstract

This paper analyzes the determinants 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, 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.
    • Handle: RePEc:vic:vicddp:1403
    Note: ISSN 1914-2838
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    File URL: https://www.uvic.ca/socialsciences/economics/_assets/docs/discussion/ddp1403.pdf
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    References listed on IDEAS

    as
    1. Ravallion, Martin & Datt, Gaurav, 1995. "Growth and poverty in rural India," Policy Research Working Paper Series 1405, The World Bank.
    2. 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.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Rural Non-Farm Employment; Male; Female; Convergence; Panel Data;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I20 - Health, Education, and Welfare - - Education - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General

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