2009, English, Article, Working paper edition: Poverty decline, agricultural wages, and non-farm employment in rural India [electronic resource] : 1983-2004 / Peter Lanjouw, Rinku Murgai. Lanjouw, Peter.

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Published
  • [Washington, D.C. : World Bank, 2009]
Language
  • English

Edition details

Title
  • Poverty decline, agricultural wages, and non-farm employment in rural India : 1983-2004 /​ Peter Lanjouw, Rinku Murgai.
Author
  • Lanjouw, Peter.
Other Authors
  • Murgai, Rinku.
  • World Bank
Published
  • [Washington, D.C. : World Bank, 2009]
Medium
  • [electronic resource]
Series
Subjects
Summary
  • "The authors analyze five rounds of National Sample Survey data covering 1983, 1987/​8, 1993/​4, 1999/​0, and 2004/​5 to explore the relationship between rural diversification and poverty. Poverty in rural India declined at a modest rate during this period. The authors provide region-level estimates that illustrate considerable geographic heterogeneity in this progress. Poverty estimates correlate well with region-level data on changes in agricultural wage rates. Agricultural labor remains the preserve of the uneducated and also to a large extent of the scheduled castes and scheduled tribes. Although agricultural labor grew as a share of total economic activity over the first four rounds, it had fallen back to the levels observed at the beginning of the survey period by 2004. This all-India trajectory masks widely varying trends across states. During this period, the rural non-farm sector grew modestly, mainly between the last two survey rounds. Regular non-farm employment remains largely associated with education levels and social status that are rare among the poor. However, casual labor and self-employment in the non-farm sector reveal greater involvement by disadvantaged groups in 2004 than in the preceding rounds. The implication for poverty is not immediately clear - the poor may be pushed into low-return casual non-farm activities due to lack of opportunities in the agricultural sector rather than being pulled by high returns offered by the non-farm sector. Econometric estimates reveal that expansion of the non-farm sector is associated with falling poverty via two routes: a direct impact on poverty that is likely due to a pro-poor marginal incidence of non-farm employment expansion; and an indirect impact attributable to the positive effect of non-farm employment growth on agricultural wages. The analysis also confirms the important contribution to rural poverty reduction from agricultural productivity, availability of land, and consumption levels in proximate urban areas. "--World Bank web site.
Notes
  • Title from PDF file as viewed on 5/​8/​2009.
  • Includes bibliographical references.
  • Also available in print.
Technical Details
  • System requirements: Adobe Acrobat Reader.
  • Mode of access: World Wide Web.
Language
  • English
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