Structure and Changes in Household Income and Employment Across Social Groups in Rural India

Abstract

Indian economy has undergone important structural changes leading to high growth and poverty reduction in the last few decades. Rural economy has also registered significant changes during this period. Important among them is the growth in non-farm sector’s share in rural income and employment. This study intends to examine the following two questions: First, given the increasing importance of market-led non-farm sector in rural economy, do caste inequities of the rural economy continue to exist in non-agricultural economy? Second, does caste identity independently affect the non-farm sector inequities or because of the nature of its association with non-caste determinants? Findings show growing importance of non-farm sector in rural income generation and employment. However, the opportunities are not accessed equally. While regular salaried work and other transfers are increasingly accessed by forward groups (Brahmins, Others) and, OBCs there is high and increasing access to non-farm labour work among disadvantaged groups (SCs, STs, Muslims). Higher education emerges as the important factor in accessing better income opportunities in the rural non-farm sector. Inequality in higher education across caste groups may not allow the differences to disappear soon.