Abstract
While agrarian stress has become a long-term phenomenon in the developing countries like India and land is likely to lose its importance as a determinant of wealth and power in rural areas, households are coping, adapting and securing their livelihood through diversification into non-agricultural activities. The study is aimed to understand the process of out-migration and income diversification of households in rural areas. It is based on the primary survey of a block of an underdeveloped region like the state of Bihar in north India. The study based on field experiences shows that the size of agricultural economy has become very small and it can hardly support the household economy while the expenditure is increasingly diversifying and household needs more income in cash. Households are adapting to the situation by using their available young male labour force, deploying them at different locations and earning remittances.
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