HuSS: International Journal of Research in Humanities and Social Sciences

Open Access Open Access  Restricted Access Subscription Access

A Study on Determinants of Participation in Rural Nonfarm Employment


Affiliations
1 Government Arts College (Autonomous), Karur, Tamil Nadu, India
 

The present research has been conducted through field surveys in Rural Tamil Nadu to perceive the factors influencing the rural workers’ participation in the nonfarm activities. A total of 240 workers comprising 143 wage employment and 97 self employment workers were taken in the study from the districts of Dindigul, Karur and Trichy. The nonfarm self employment workers were found to earn more than nonfarm wage employment workers. The empirical evidence from Multinomial result exposed that engaging in nonfarm employment was mostly by “push” factors, but less by “pull” factors at work. The result of Multinomial Logit Model also showed that there was difference in the effect of explanatory variables on participation of households in nonfarm wage and self employment activities. The explanatory variables such as age, educational status, community, family size did not emerge as significant factors. However the variables such as marital status, distance of travel, land holding, borrowing and livestock are the determinant factors of rural nonfarm (RNF) employment.

Keywords

Determinants, Multinomial Logit Model, Rural Nonfarm Employment (RNF), Self Employment, Wage Employment.
User
Notifications
Font Size

  • Venkatesh P. Recent Trends in Rural Employment and Wages in India: Has the Growth Benefitted the Agricultural Labours? Journal of Agricultural Economics and Research. 26 (Conference Number). 2013; 13–20.

  • Haggblade S, Hazell P, Reardon T. The Rural Nonfarm Economy: Prospects for Growth and Poverty Reduction. World Development. 2010; 38(10):1429–41. https://doi.org/10.1016/j.worlddev.2009.06.008.

  • World Bank. Agriculture for Development: world Development Report 2008: Washington DC, World Bank.

  • Maddock N. Note on actions in rural development in Central Asia, Central Asia Cluster Meeting: Almaty 3-5 December 2009.

  • Asian Development Bank. A Study on International Migrants’ Remittances in Central Asia and South Caucasus. Country Report on Remittances of International Migrants in Tajikistan. 2008.

  • Chadha GK. Non-Farm Employment for Rural Households in India, Evidence and Prognosis. Indian Journal of Labour Economics. 1993; 36(3):296–327.

  • Reardon T. Using evidence of household income diversification to inform study on the rural non-farm labour market in Africa. World Development. 1997; 25(5):735–47. https://doi.org/10.1016/S0305-750X(96)00137-4

  • Reardon et al. Household Income Diversification into Rural Nonfarm Activities. Part II, Chapter 6. In: Haggblade S, Hazell P, Reardon T. Transforming the Rural Nonfarm Economy.Baltimore: The Johns Hopkins University Press. 2006; 115–40. PMid:16382120

  • Deiniger K, Olinte P. Rural nonfarm employment and income diversification in Colombia. World Development. 2001; 29(3): 455–65. https://doi.org/10.1016/S0305-750X(00)00106-6.

  • Reardon T. Using evidence of household income diversification to inform study on the rural non-farm labour market in Africa. World Development. 1997; 25(5):735–47. Crossref 11. Coppard D. The rural non-farm economy in India: A review of the literature. NRI Report No. 2662, Chatham: NRI, 2001.

  • Berdegue JA, Ramirez E, Reardon T, Escobar G. Rural Non-farm Employment and Incomes in Chile. World Development. 2001; 29(3):411–25. https://doi.org/10.1016/ S0305-750X(00)00102-9.

  • Ruben R, Van den berg M. Nonfarm Employment and Poverty Alleviation of Rural Farm Households in Honduras. World Development. 2001 Mar; 29(3):549–60. https://doi.org/10.1016/S0305-750X(00)00107-8.

  • Isgut AE. Non-Farm Income and Employment in Rural Honduras: Assessing the Role of Locational Factors. Journal of Development Studies. 2004 Feb; 40(3):59–86. https://doi.org/10.1080/0022038042000213201.

  • Lanjouw P, Shariff A. Rural Nonfarm Employment in India: Access, Income, and Poverty Impact. Working Paper Series no 81. New Delhi: National Council of Applied Economic Research, 2004.

  • Micevsa M, Bahadur D. Rural Non-farm employment and income in the eastern Himalayas. Center for Development Research, University of Bonn. 2007.

  • Schwab JA. Multinomial logistic regression. Basic relationships and complete problems, 2002. Available from: http:// www. Utexas.edu./courses/Schwab/ solving problems

  • Tassew W, Oskam A. Income diversification and entry barriers: evidence from the Tigray Region of Northern Ethiopia. Food Policy. 2001; 26(4):351–65. https://doi.org/10.1016/ S0306-9192(01)00009-4.

  • Atamanov A, van den Berg M. Microeconomic analysis of rural nonfarm activities in the Kyrgyz Republic: What determines participation and returns? Working Paper series 2011WP001, Maastricht Graduate School of Governance, The Netherlands. 2011.

  • Louis F, Sohneson TP. Household Enterprises in Sub–Saharan Africa: Why they Matter for Growth, Jobs and Livelihoods. Policy Research Working Papers No.6184. Washington DC: World Bank. 2012.

  • Paula N. A Profile of nonfarm household enterprises in Sub– Saharan Africa, UNU-MERIT working paper 2017-048. 2017.

  • Lanjouw P, Shariff A. Rural Nonfarm Employment in India: Access, Income, and Poverty Impact. Working Paper Series no 81. New Delhi: National Council of Applied Economic Research. 2004.

  • Pandey R, Cannon T, Jena G, Wandschneider T. Rural nonfarm employment in Nayagarh District of Orissa: Findings from a participatory rural appraisal. Chatham: NRIReport No. 2694, Chatham: NRI. 2002.

  • Som R, Kleih U, Kumar Y, Jena SK. Rural non-farm employment in Madhya Pradesh: Findings of a participatory rural appraisal in 8 villages. NRI Report No. 2694, Chatham: NRI.2002.

  • Coppard D. The rural non-farm economy in India: A review of the literature. NRI Report No. 2662, Chatham: NRI. 2001.

  • Abdulai A, Crolerees A. Determinants of income diversification amongst rural households in Southern Mali. Food Policy. 2001; 26:437–52. https://doi.org/10.1016/S03069192(01)00013-6.

  • Berdegue JA, Ramirez E, Reardon T, Escobar G. Rural Non-farm Employment and Incomes in Chile. World Development. 2001; 29(3):411–25. https://doi.org/10.1016/ S0305-750X(00)00102-9.

  • Davis B, Winters P, Carletto G, Covarrubias K, Qui-ones EJ, Zezza A, Stamoulis K, Azzarri C, Digiuseppe S. A Cross-Country Comparison of Rural Income Generating Activities. World Development. 2010; 38:48–63. https://doi.org/10.1016/j.worlddev.2009.01.003.

  • Kharatyan H. Development of non-farm activities in the Armenian village. NRI Report No. 2680, Chatham: NRI Report No. 2681, Chatham: NRI. 2002.

  • Kobaladze K. A study of non-farm activities in FSU Georgia: A regional focus. NRI Report No. 2681, Chatham: NRI. 2002.

  • Babatunde RO, Qaim M. Patterns of Income Diversification in Rural Nigeria: Determinants and Impacts. Quarterly Journal of International Agriculture. 2009; 48(4):305–20.

  • Lay J, Mahmoud TO, M’mukaria GM. Few Opportunities, Much Desperation: The Dichotomy of Non-Agricultural Activities and Inequality in Western Kenya. World Development. 2008; 36:2713–32. https://doi.org/10.1016/j.worlddev.2007.12.003.

  • Croppenstedt A. Household Income Structure and Determinants in Ryral Egypt. Working Paper 06-02, Agricultural Development Economic division of the Food and Agriculture Organisation of United Nations (FAO ESA). 2006.

  • Abdulai A, Delgado CL. Determinants of Nonfarm Earnings of Farm- based Husbands and Wives in Northern Ghana. American Journal of Agricultural Economics. 1999; 81:117– 30. https://doi.org/10.2307/1244455.

  • Bhalla and Hazell. Rural Employment and Poverty – Strategies to Eliminate Rural Poverty within a Generation. Economic and Political Weekly. 2003 Aug; 38(33):16–22

  • Bhaumik SK. Diversification of Employment and Earnings by Rural Households in West Bengal. Indian Journal of Agricultural Economics. 2007; 62(4):585–606.

  • Mishra AK, Goodwin BK. Farm income variability and the supply of farm Labor. American Journal of Agricultural Economics. 1997; 79:880–7. https://doi.org/10.2307/1244429.

  • Wandschneider T, Davis J. Rural non-farm employment in transition economies. Proceedings of a workshop held at the Old Royal Naval College. University of Greenwich, London. Chatham: NRI. 2002 6-7 Mar


Abstract Views: 725

PDF Views: 428




  • A Study on Determinants of Participation in Rural Nonfarm Employment

Abstract Views: 725  |  PDF Views: 428

Authors

S. Jagadees Pandi
Government Arts College (Autonomous), Karur, Tamil Nadu, India

Abstract


The present research has been conducted through field surveys in Rural Tamil Nadu to perceive the factors influencing the rural workers’ participation in the nonfarm activities. A total of 240 workers comprising 143 wage employment and 97 self employment workers were taken in the study from the districts of Dindigul, Karur and Trichy. The nonfarm self employment workers were found to earn more than nonfarm wage employment workers. The empirical evidence from Multinomial result exposed that engaging in nonfarm employment was mostly by “push” factors, but less by “pull” factors at work. The result of Multinomial Logit Model also showed that there was difference in the effect of explanatory variables on participation of households in nonfarm wage and self employment activities. The explanatory variables such as age, educational status, community, family size did not emerge as significant factors. However the variables such as marital status, distance of travel, land holding, borrowing and livestock are the determinant factors of rural nonfarm (RNF) employment.

Keywords


Determinants, Multinomial Logit Model, Rural Nonfarm Employment (RNF), Self Employment, Wage Employment.

References





DOI: https://doi.org/10.15613/hijrh%2F2017%2Fv4i2%2F167551