This study evaluates the regional dynamics of nonfarm sector growth in Uttar Pradesh, leveraging data from the National Sample Survey Organisation (NSSO) and the Periodic Labour Force Survey (PLFS). Our investigation aims to uncover the underlying factors behind the regional disparities observed in the growth of the non-farm sector. We found notable differences across regions, with the southern part of Uttar Pradesh exhibiting a higher proportion of casual labour and stagnation in rural manufacturing activities compared to the western region. This pattern has led to increased casualisation of the rural workforce. In contrast, the western region has seen a significant shift among educated individuals, landowners, and those belonging to socially dominant castes towards employment in the rural non-farm sector, a trend not observed in the southern region. By employing a multinomial logit model, we analysed various factors influencing non-farm employment, such as age, gender, education, land ownership, caste, and household size, uncovering significant regional variations in these determinants. The findings suggest that non-farm activities in many areas of Uttar Pradesh are pursued out of economic distress rather than as a preferred employment choice.
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