Access to Non-farm Employment in Contemporary India: A Study of Bihar and Punjab

Abstract

Rural non-farm diversification in India is taking up new roles amidst increasing agrarian distress. In this context, two issues have been examined in this paper: first, the nature of rural non-farm diversification, and second, the accessibility of households to rural non-farm employment in the states of Bihar and Punjab. The study is predominantly based on unit level data of the latest round of the Situational Assessment Survey of Agricultural Households (NSSO). Findings suggest that while non-farm activities are largely adopted by landless and marginal land households in both states, there are a few lucrative options available which are being accessed by large landholders in Punjab. Overall, caste, gender and education are dominant determinants that work as barriers to the entry for rural households. The findings recommend that institutional reforms along with public policies should be prioritised towards generating sustainable non-farm livelihood options while eliminating multi-dimensional exclusions in rural labour markets considering regional prerequisites.