Employment Diversification in Rural India: Nature, Pattern and Determinants

Abstract

The present study examines the pattern and nature of occupational shift vis-à-vis non-farm employment in rural India using unit level data of 61st (2004-05) and 68th (2011-12) NSS rounds. The pattern of Rural Non-Farm (RNF) employment is estimated through proportions and employment elasticity to capture the employment for a longer time period during the year (Usual Principal Status (UPS)). The RNF sector provides opportunities either in self-employment or casual employment but very less for regular employment. Furthermore, Multinomial Logit Model has been used to identify the factors that affect the adoption of different RNF occupations at macro as well as at micro level. The regression results reveal that at macro level, electrification, urbanisation along with irrigation impact positively to join RNF as principle occupation whereas at micro level upgradation of education level along with formal vocational training acts as a pull factor whereas the small size of land holdings works as a push factor for moving into RNF sector. The study also highlights the hike in employment in construction sector which is majorly of informal in nature and issue of concern in the present era. Thus, study suggests that in rural areas, policies should be promoted for generating gainful and regular kind of employment in the construction sector along with boosting the manufacturing sector.