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Rural Income and Employment Diversity in India During 1994 and 2005

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  • Abusaleh Shariff

    (International Food Policy Research Institute, New Delhi. [email: a.shariff@cgiar.org])

Abstract

This article assesses the structure of rural income and employment according to source in India. It probes the size and role of ‘rural nonfarm employment’ in poverty alleviation. Data from two nationally representative rural sample surveys (33230 and 27010 households respectively) with reference years 1993–1994 and 2004–2005 are subjected to multinomial logit and Censored Least Absolute Deviation Model (CLAD) regressions to explore importance of diversity of income sources across states and regions. These are rare data on direct household income estimates in the multi-model survey context having advantage of many household and village level determinants suitable for advanced analysis. Evidence suggests considerable income diversification over the reference decade, but distribution of shares suggests that top most quintile draw almost all of the benefits of recent economic growth in India. The economic linkage between the Rural Nonfarm Employment (RNFE) and rural wage rates has reduced and has been almost non existent during the later reference year in analysis.

Suggested Citation

  • Abusaleh Shariff, 2009. "Rural Income and Employment Diversity in India During 1994 and 2005," Journal of Developing Societies, , vol. 25(2), pages 165-208, April.
    • Handle: RePEc:sae:jodeso:v:25:y:2009:i:2:p:165-208
    DOI: 10.1177/0169796X0902500203
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    References listed on IDEAS

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    1. Deininger, Klaus & Jin, Songqing & Nagarajan, Hari K., 2009. "Determinants and Consequences of Land Sales Market Participation: Panel Evidence from India," World Development, Elsevier, vol. 37(2), pages 410-421, February.
    2. Jayaraman, Rajshri & Lanjouw, Peter, 1999. "The Evolution of Poverty and Inequality in Indian Villages," The World Bank Research Observer, World Bank, vol. 14(1), pages 1-30, February.
    3. Thomas Reardon & Kostas Stamoulis & Prabhu Pingali, 2007. "Rural nonfarm employment in developing countries in an era of globalization," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 173-183, December.
    4. Amin, Mohammad & Mattoo, Aaditya, 2008. "Human capital and the changing structure of the Indian economy," Policy Research Working Paper Series 4576, The World Bank.
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