Determinants of rural livelihood diversification in Uttar Pradesh: recent developments and changes

Shadab Hashmi ()
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Shadab Hashmi: Rajendra College

SN Business & Economics, 2025, vol. 5, issue 6, 1-32

Abstract: Abstract This study examines the determinants of rural livelihood diversification in Uttar Pradesh, India, focusing on the shift from agricultural to non-agricultural activities. The study analyzes the growth of rural nonfarm employment (RNFE) since the 1990s and the distribution of employment status among social groups, age structure, educational status, land distribution, and the underlying causes for choosing specific types of employment. Using data from NSSO surveys, the study finds a substantial increase in the proportion of RNFE in rural Uttar Pradesh. The study also examines the monthly per capita household consumption expenditure in population quintiles for different employment statuses in the nonfarm sector, including self-employment, regular employment, and casual employment. The study employs a binomial logit model to investigate the broad determinants of nonfarm employment for various employment statuses. The findings suggest that household and individual characteristics, such as age, sex, educational attainment, landholdings, technical training, and social groups, influence the adoption of particular employment types. This study seeks to address the existing research gap concerning the nature and determinants of Rural Non-Farm Employment (RNFE) opportunities in Uttar Pradesh, which possesses the largest rural population in India. The results of this study can inform policies aimed at promoting rural transformation and improving the status of workers in the non-agricultural sector.

Keywords: Rural nonfarm employment (RNFE); Rural livelihood diversification; Uttar Pradesh; Determinants of nonfarm employment; Employment status (search for similar items in EconPapers)
JEL-codes: J22 J24 J46 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s43546-025-00835-6

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