• editor.aipublications@gmail.com
  • Track Your Paper
  • Contact Us
  • ISSN: 2456-8678

International Journal Of Rural Development, Environment And Health Research(IJREH)

Determinants of non-farm employment in Punjab: Evidence from National Sample Survey Rounds

Nitish Khurana , Harsh Gandhar , Sumit Kumar


International Journal of Rural Development, Environment and Health Research(IJREH), Vol-7,Issue-2, March - April 2023, Pages 17-29, 10.22161/ijreh.7.2.3

Download | Downloads : 9 | Total View : 371

Article Info: Received: 15 Mar 2023; Received in revised form: 11 Apr 2023; Accepted: 20 Apr 2023; Available online: 30 Apr 2023

Share

There is growing consensus among the social scientist that for the development of rural economy, rural non-farm sector should be thriving. The present study is an attempt to study the factors enabling the rural households of Punjab to participate in the rural non-farm activities. In the present study, the household level data of National Sample Survey Organization’s employment-unemployment 50th round and 68th round is utilized. The rural households of Punjab are categorized into; self-employed, casual labourer, regular or salary earners and others in farm as well as non-farm sector. The logit regression model for both the rounds are utilised to study the factors impacting the participation as self-employed, casual labourers, and regular wage earners in rural non-farm sector. As compared to the year 1993-94, in the year 2011-12, the proportion of households earning their livelihood in rural non-farm sector has increased. Moreover, the proportion of casual labourer in rural non-farm sector has also increased. The choice of occupations among the self-employed, regular salary earners and causal labourer in the rural non-farm sector is also changing in Punjab. The factors like education, number of skilled members in the households, head’s education, household belonging to developed districts significantly impacted the choice of working in rural non-farm sector of Punjab. The study recommends that with increase in investment in education and developing the infrastructure in rural areas can develop the rural non-farm sector.

Determinants, Employment, Logit, Non-farm, Rural economy

[1] B. Panda, Growth, Composition and Determinants of Rural Non-Farm Employment in North East India. Noida: V.V. Giri National Labour Institute, 2012.
[2] W. A. Lewis, “Economic Development with Unlimited Supplies of Labour,” Manchester Sch., vol. 22, no. 2, pp. 139–191, May 1954, doi: 10.1111/j.1467-9957.1954.tb00021.x.
[3] G. Ranis and J. C. H. Fei, “A Theory of Economic Development,” Am. Econ. Rev., vol. 51, no. 4, pp. 533–565, Aug. 1961, [Online]. Available: http://www.jstor.org/stable/1812785
[4] T. W. Schultz, “Changing Relevance of Agricultural Economics,” J. Farm Econ., vol. 46, no. 5, p. 1004, Dec. 1964, doi: 10.2307/1236672.
[5] S. Kuznets, “Modern Economic Growth: Findings and Reflections,” Am. Econ. Rev., vol. 63, no. 3, pp. 247–258, Aug. 1973, [Online]. Available: http://www.jstor.org/stable/1914358
[6] H. B. Chenery, “Patterns of Industrial Growth,” Am. Econ. Rev., vol. 50, no. 4, pp. 624–654, Aug. 1960, [Online]. Available: http://www.jstor.org/stable/1812463
[7] D. Reddy, A. A. Reddy, N. Nagaraj, and M. C. S. Bantilan, Rural Non-Farm Employment and Rural Transformation in India. 2014. doi: 10.13140/2.1.2047.4569.
[8] Government of India, “Provisional Estimates of Annual National Income 2020-21 and Quarterly Estimates of Gross Domestic Product for the Fourth Quarter (Q4) of 2020-21,” New Delhi, 2021. [Online]. Available: https://mospi.gov.in/documents/213904/416359//Press Note_31-05-2021_m1622547951213.pdf/7140019f-69b7-974b-2d2d-7630c3b0768d
[9] Government of India, “Employment and Unemployment Survey, July 1993 - June 1994, NSS 50th Round,” New Delhi, 1995.
[10] Government of India, “Employment and Unemployment, July 2009 - June 2010, 66th Round,” New Delhi, 2011.
[11] P. Gupta, “NSSO survey reveals positive shift; jobs moving from farming to manufacturing, services,” Financial Express, New Delhi, Jun. 07, 2019. [Online]. Available: https://www.financialexpress.com/economy/surplus-rural-workforce-shifting-from-agriculture-to-services-plfs-jobs-report-reveals-positive-switch/1600637/
[12] R. Chand, “Doubling Farmers’ Income:Rationale, Strategy, Prospectus and Action Plan,” New Delhi, 2017. [Online]. Available: https://www.niti.gov.in/writereaddata/files/document_publication/DOUBLING FARMERS INCOME.pdf
[13] A. C. Dhas, “Agricultural Crisis in India: The Root Cause and Consequences,” Munich, 18930, 2009. [Online]. Available: https://ideas.repec.org/p/pra/mprapa/18930.html
[14] R. Wagh and A. P. Dongre, “Agricultural Sector: Status, Challenges and it’s Role in Indian Economy,” J. Commer. Manag. Thought, vol. 7, no. 2, p. 209, 2016, doi: 10.5958/0976-478X.2016.00014.8.
[15] S. M. Dev, “Transformation of Indian Agriculture? Growth, Inclusiveness and Sustainability,” Mumbai, 026, 2018. [Online]. Available: http://www.indiaenvironmentportal.org.in/files/file/TRANSFORMATION OF INDIAN AGRICULTURE.pdf
[16] R. Chand, S. K. Srivastava, and J. Singh, “Changes in Rural Economy of India, 1971 to 2012 - Lessons for Job-led Growth,” Econ. Polit. Wkly., vol. 52, no. 52, pp. 64–71, 2017, [Online]. Available: https://www.niti.gov.in/sites/default/files/2021-08/5_EPW_Article_Changes_in_Rural_Economy_of_India_1971_to_2012.pdf
[17] G. S. Mehta, “Non-farm economy and rural development,” Lucknow, 2002. [Online]. Available: https://niti.gov.in/planningcommission.gov.in/docs/reports/sereport/ser/stdy_nfeco.pdf
[18] S. M. Dev, “Bold Initiatives Needed on Agriculture and Rural Employment,” Econ. Polit. Wkly., vol. 37, no. 12, pp. 1088–1091, Aug. 2002, [Online]. Available: http://www.jstor.org/stable/4411892
[19] H. S. Sidhu, “Crisis in Agrarian Economy in Punjab - Some Urgent Steps,” Econ. Polit. Wkly., vol. 37, no. 30, 2002.
[20] R. S. Ghuman, “Socio-Economic Crisis in Rural Punjab,” Econ. Polit. Wkly., vol. 43, no. 7, pp. 12–15, Aug. 2008, [Online]. Available: http://www.jstor.org/stable/40277604
[21] A. Joshi, “Punjab: Farm Household Income, Investment and Consumption,” Econ. Polit. Wkly., vol. 39, no. 3, 2004.
[22] Government of India, “Press Note on NSS Report No. 587: Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India, 2019,” National Statistical Office, 2021. http://mospi.nic.in/sites/default/files/press_release/pressnote_587_09092021_0.pdf
[23] S. Hussain and S. Bathla, “What the Latest NSS Survey Tells us About the State of Farmers in India,” The WIRE, New Delhi, Sep. 20, 2021. [Online]. Available: https://thewire.in/agriculture/what-the-latest-nss-survey-tells-us-about-the-state-of-farmers-in-india
[24] Y. Yadav, “NSS survey on farmers is a mid-term report card of Modi’s promise, with ‘fail’ written over it.,” ThePrint, New Delhi, Sep. 15, 2021. [Online]. Available: https://theprint.in/opinion/nss-survey-on-farmers-is-a-mid-term-report-card-of-modis-promise-with-fail-written-over-it/733823/
[25] K. Vatta and B. R. Garg, “Rural Non-Farm Sector in Punjab: Pattern and Access to Employment and Income,” Indian J. Agric. Econ., vol. 63, no. 2, pp. 224–243, 2008.
[26] S. Singh, “An economic analysis of farm and non-farm employment in rural Punjab,” Punjab Agriculutral University, Ludhiana, 2003. [Online]. Available: https://krishikosh.egranth.ac.in/handle/1/5810015797
[27] V. Bharti, “70% student visa aspirants from farming families: Study,” The Tribune, Chandigarh, Feb. 03, 2021. [Online]. Available: https://www.tribuneindia.com/news/punjab/coal-india-stake-sale-today-govt-eyes-rs-22-600-crore-35512
[28] R. Singh, “Debt misery hits families as youth fly abroad,” The Tribune, Chandigarh, Mar. 28, 2021. [Online]. Available: https://www.tribuneindia.com/news/patiala/debt-misery-hits-families-as-youth-fly-abroad-231808
[29] V. S. Vyas and G. Mathai, “Farm and Non-Farm Employment in Rural Areas: A Perspective for Planning,” Econ. Polit. Wkly., vol. 13, no. 6/7, pp. 333–347, Aug. 1978, [Online]. Available: http://www.jstor.org/stable/4366359
[30] R. T. Shand, Off-farm employment in the development of rural Asia: Issues. Canberra: Australian National University, 1986.
[31] S. K. Jayasuriya and R. T. Shand, “Technical change and labor absorption in Asian agriculture: Some emerging trends,” World Dev., vol. 14, no. 3, pp. 415–428, Mar. 1986, doi: 10.1016/0305-750X(86)90079-3.
[32] S. Bhalla, “Does land quality matter?: Theory and measurement,” J. Dev. Econ., vol. 29, no. 1, pp. 45–62, 1988, [Online]. Available: https://econpapers.repec.org/RePEc:eee:deveco:v:29:y:1988:i:1:p:45-62
[33] A. Saith, The rural non-farm economy: Processes and policies. Geneva: International Labour Office, 1992. [Online]. Available: https://www.ilo.org/public/libdoc/ilo/1992/92B09_172_engl.pdf
[34] Suresh, “The study of nature and characteristics of rural non-farm sector in India,” Int. J. Manag. Dev. Stud., vol. 6, no. 4, pp. 07–19, 2017, [Online]. Available: https://www.ijmds.in/index.php/ijmds/article/view/271/252
[35] D. Singh, “Economic development, rural non-farm employment and public policy: A case study Of Punjab,” Punjabi University, Patiala, 2012. [Online]. Available: https://shodhganga.inflibnet.ac.in/handle/10603/4261#
[36] A. Vaidyanathan, “Labour Use in Rural India-A Study of Spatial and Temporal Variations,” Econ. Polit. Wkly., vol. 21, no. 52, 1986, [Online]. Available: https://www.epw.in/journal/1986/52/review-agriculture-review-issues-specials/labour-use-rural-india-study-spatial-and
[37] T. Amemiya, Advanced Econometrics. Cambridge: Harvard University Press, 1985. [Online]. Available: https://books.google.co.in/books?id=0bzGQE14CwEC
[38] W. H. Greene, Econometric Analysis, 5th ed. New Delhi: Pearson Education, Inc., 2003.
[39] R. S. Ghuman, “Rural Non-Farm Employment Scenario: Reflections from Recent Data in Punjab,” Econ. Polit. Wkly., vol. 40, no. 41, pp. 4473–4480, Aug. 2005, [Online]. Available: http://www.jstor.org/stable/4417268
[40] S. Singh and S. Bhogal, “Punjab’s Small Peasantry: Thriving or Deteriorating?,” Econ. Polit. Wkly., vol. 49, no. 26/27, pp. 95–100, Aug. 2014, [Online]. Available: http://www.jstor.org/stable/24480174
[41] S. S. Gill, “Agriculture Crop Technology and Employment Generation in Punjab,” in Future of Agriculture in Punjab, S. S. Johal and S. K. Ray, Eds. Chandigarh: Centre for Research in Rural and Industrial Development, 2002.
[42] R. Padhi, “On Women Surviving Farmer Suicides in Punjab,” Econ. Polit. Wkly., vol. 44, no. 19, 2009, [Online]. Available: https://www.epw.in/journal/2009/19/special-articles/women-surviving-farmer-suicides-punjab.html
[43] Government of India, “Employment and Unemployment, July 2011- June 2012, NSS 68th Round,” New Delhi, 2013.