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The Role of Employment Diversification in Reducing Vulnerability to Poverty among Marginal and Small-holder Agricultural Households in India

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  • Sagarika Dey

Abstract

This article combines two relatively nascent and inter-related approaches to poverty analysis and measurement, that is, the asset-based approach and the vulnerability approach to assess the poverty status of various land-owning classes in rural India. Contingent on the finding that marginal and small-holder households constitute a high-risk group in terms of the incidence of current poverty and vulnerability to future poverty, the study explores the role of non-agricultural activity in providing livelihood security and tackling poverty and vulnerability among land-poor rural households. The findings reveal that while most types of rural non-farm employment have significant poverty-reducing effects, human capital constitutes the most potent element in tackling poverty in the target group. We therefore suggest that an emphasis on skill upgradation of marginal and small landholders, coupled with policies directed towards development of non-farm activity, could provide an effective, permanent solution for curbing poverty and mitigating livelihood risks among these households. JEL Classification: I31, I32, J21, O18

Suggested Citation

  • Sagarika Dey, 2018. "The Role of Employment Diversification in Reducing Vulnerability to Poverty among Marginal and Small-holder Agricultural Households in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(1), pages 88-112, February.
    • Handle: RePEc:sae:mareco:v:12:y:2018:i:1:p:88-112
    DOI: 10.1177/0973801017740661
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    References listed on IDEAS

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    7. Alain Janvry & Ravi Kanbur (ed.), 2006. "Poverty, Inequality and Development," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-29748-4, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Asset Poverty; Vulnerability; Rural Nonfarm Employment; India;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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