RURAL HOUSEHOLD’S PARTICIPATION IN NON-FARM ECONOMIC ACTIVITIES IN INDIA USING BINARY LOGISTIC REGRESSION MODEL

Maryam Sabreen and Deepak Kumar Behera

Regional and Sectoral Economic Studies, 2021, vol. 21, issue 1, 5-16

Abstract: Non-farm sectors have gradually evolved to play a major role in Indian economy. Its expansion arose from the structural transformation of the economy from agrarian to industrial, and then to a service-dominated environment, with occupational distribution changing in lockstep. Though, slightly different in Indian scenario where services preceded industries. The present work focused on the understanding the determinants of growth of rural non-farm sector employment in India taking the case of Bihar using 442 sample households. Binary Logistic Regression Model has been used to study the role of age, education, landholding, and source of income in motivating the household to take up non-farm employment. The results indicate, land holding and source of income to be significant while age and education are insignificant variables.

Keywords: Employment; Non-farm Sector; Rural; Structural Transformation. (search for similar items in EconPapers)
JEL-codes: E24 P25 R11 (search for similar items in EconPapers)
Date: 2021
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