Description: Non-Farm Diversification, Poverty, Economic Mobility and Income Inequality : A Case Study in Village India

Non-Farm Diversification, Poverty, Economic Mobility and Income Inequality : A Case Study in Village India

This paper assembles data at the all-India level and for the village of Palanpur, Uttar Pradesh, to document the growing importance, and influence, of the non-farm sector in the rural economy between the early 1980s and late 2000s. The suggestion f...

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Bibliographic Details
Main Authors:	Himanshu, Lanjouw, Peter, Murgai, Rinku, Stern, Nicholas
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ABSOLUTE POVERTY ADVERSE IMPACTS AGRICULTURAL ACTIVITIES AGRICULTURAL DEVELOPMENT AGRICULTURAL INCOMES AGRICULTURAL LABORER AGRICULTURAL LABORERS AGRICULTURAL PRACTICES AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL WAGE AGRICULTURAL WAGE EMPLOYMENT AGRICULTURAL WAGE LABOR AGRICULTURAL WAGES ANNUAL GROWTH AVERAGE ANNUAL AVERAGE INCOME AVERAGE INCOMES BETWEEN-GROUP INEQUALITY CHANGES IN POVERTY COMPARABILITY PROBLEMS CONSUMPTION AGGREGATE DAILY WAGE DATA SET DECLINE IN POVERTY DECLINING POVERTY DECOMPOSABLE INCOME INEQUALITY MEASURES DECOMPOSABLE INEQUALITY MEASURES DECOMPOSITION ANALYSIS DECOMPOSITION METHODOLOGY DEVELOPING WORLD DISADVANTAGED GROUP DISADVANTAGED GROUPS DISTRIBUTIONAL OUTCOMES EARNING ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC DIVERSIFICATION ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC MOBILITY ECONOMIC REFORMS ECONOMIC REVIEW ECONOMIC STUDIES EMPLOYEE EMPLOYMENT GROWTH EMPLOYMENT IN AGRICULTURE EMPLOYMENT PATTERNS EMPLOYMENT SECURITY EMPLOYMENT STATUS EMPLOYMENT TRENDS FACTOR COMPONENTS FALLING POVERTY FAMILY LABOR FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM EMPLOYMENT OPPORTUNITIES FARM GROWTH FARM INCOME FARM INCOMES FARM SECTOR FARM WORK FARM WORKERS FARMER FARMERS GINI COEFFICIENT GLOBAL POVERTY HOUSEHOLD HEAD HOUSEHOLD MEMBERS HOUSEHOLD SIZE HUMAN DEVELOPMENT ILLITERACY IMPERFECT INFORMATION INCIDENCE OF POVERTY INCOME INCOME DATA INCOME DISTRIBUTION INCOME GROWTH INCOME INEQUALITY INCOME LEVELS INCOME SOURCES INCOME TRENDS INEQUALITY DECOMPOSITION INEQUALITY MEASUREMENT INEQUALITY WILL INCREASE IRRIGATION JOB SECURITY JOBS LABOR FORCE LABOR MARKET LABOUR LAND AVAILABILITY LANDHOLDINGS LANDLESS HOUSEHOLDS LIVING STANDARDS MANUAL LABOR MARKET ECONOMIES NON-FARM EMPLOYMENT NON-FARM EMPLOYMENT OPPORTUNITIES NON-FARM SECTOR OCCUPATION OCCUPATIONAL MOBILITY PER CAPITA INCOME PER CAPITA INCOMES POLICY DISCUSSIONS POLICY RESEARCH POOR POOR PEOPLE POPULATION GROWTH POPULATION SUB-GROUPS POVERTY ALLEVIATION POVERTY ASSESSMENT POVERTY ESTIMATES POVERTY LINE POVERTY LINES POVERTY REDUCTION PRELIMINARY ANALYSIS PRIMARY SCHOOL PRIMARY SOURCE PRIVATE SECTOR PRIVATE SECTOR JOBS PUBLIC EXPENDITURE PUBLIC SECTOR PUBLIC SECTOR JOBS RAPID GROWTH REAL WAGES REDUCING POVERTY REDUCTION OF INCOME REGRESSION ANALYSIS REGULAR EMPLOYMENT REGULAR JOBS RELATIVE POSITION RETAIL TRADE RISING INCOME INEQUALITY RISING INEQUALITY RURAL RURAL AREAS RURAL ECONOMY RURAL EMPLOYMENT RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL INCOMES RURAL INEQUALITY RURAL MARKETS RURAL POOR RURAL POVERTY RURAL POVERTY REDUCTION RURAL TRANSFORMATION RURAL WORKERS RURAL WORKFORCE SALARIED EMPLOYMENT SELF EMPLOYED SELF EMPLOYMENT SELF-EMPLOYMENT SIGNIFICANT IMPROVEMENT SMALL FARMERS SOCIAL HIERARCHY SOCIAL MOBILITY STRUCTURAL TRANSFORMATION SUBSISTENCE UNEMPLOYMENT VILLAGE LEVEL WAGE EMPLOYMENT WAGE PREMIUM WAGE RATES WELFARE DISTRIBUTION WORKER
Online Access:	http://documents.worldbank.org/curated/en/2013/05/17733297/non-farm-diversification-poverty-economic-mobility-income-inequality-case-study-village-india http://hdl.handle.net/10986/15555

Description
Summary:	This paper assembles data at the all-India level and for the village of Palanpur, Uttar Pradesh, to document the growing importance, and influence, of the non-farm sector in the rural economy between the early 1980s and late 2000s. The suggestion from the combined National Sample Survey and Palanpur data is of a slow process of non-farm diversification, whose distributional incidence, on the margin, is increasingly pro-poor. The village-level analysis documents that the non-farm sector is not only increasing incomes and reducing poverty, but appears as well to be breaking down long-standing barriers to mobility among the poorest segments of rural society. Efforts by the government of India to accelerate the process of diversification could thus yield significant returns in terms of declining poverty and increased income mobility. The evidence from Palanpur also shows, however, that at the village-level a significant increase in income inequality has accompanied diversification away from the farm. A growing literature argues that such a rise in inequality could affect the fabric of village society, the way in which village institutions function and evolve, and the scope for collective action at the village level. Failure to keep such inequalities in check could thus undermine the pro-poor impacts from the process of structural transformation currently underway in rural India.

Non-Farm Diversification, Poverty, Economic Mobility and Income Inequality : A Case Study in Village India

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