Dynamics of Income in Bihar: Evidence from Village Studies

10 Pages Posted: 26 Sep 2013

See all articles by Abhay Kumar

Abhay Kumar

Indian Council of Agricultural Research (ICAR)

Krishna M. Singh

Dr. Rajendra Prasad Central Agricultural University

R. Singh

Dr Rajendra Prasad Central Agricultural University

M. Meena

Indian Council of Agricultural Research (ICAR)

Anjani Kumar

NCAP-ICAR

Date Written: September 25, 2013

Abstract

The study is based on data collected under the project entitled "Tracking change in rural poverty in household and village economies in Eastern India". Data were collected from sample households through panel interview method in four villages namely; Arap, Baghakole, Inai and Susari. The study revealed that the per capita income increased by about two-fold during last two decades in Bihar but increase was higher during last five years mainly due to increase in crop and livestock productivity and more employment opportunities in even rural areas. Per capita income differs significantly from one village to another village, mainly due to per capita land and educational level. Non-farm employment is main source of income and income through migration is much higher in all the villages. There is no trend in diversity of income but it is more on large households than labour households. The inequality of income is higher on large households than labour households, mainly due to higher level of education and income diversification on these households. Educational level and number of earning members in the households are main determinants of per capita income because an increase in educational level increases skill and access to more remunerative employment, hence increase in income of households. Number of earning members is directly related to income because higher the number of earners in the family, higher the level of income.

Keywords: Rural income, Bihar, Probit analysis, Determinants of income

JEL Classification: H0, H00, H8, Q1, R2

Suggested Citation

Kumar, Abhay and Singh, Krishna M. and Singh, R. and Meena, M. and Kumar, Anjani, Dynamics of Income in Bihar: Evidence from Village Studies (September 25, 2013). Available at SSRN: https://ssrn.com/abstract=2330853 or http://dx.doi.org/10.2139/ssrn.2330853

Abhay Kumar

Indian Council of Agricultural Research (ICAR) ( email )

Krishi Bhavan
Dr. Rajendra Prasad Road
Bangalore
India

Krishna M. Singh (Contact Author)

Dr. Rajendra Prasad Central Agricultural University ( email )

Pusa
Samastipur
Pusa-Samastipur, Bihar, Bihar 848125
India
+91-9431060157 (Phone)
+91-6274-240251 (Fax)

HOME PAGE: http://www.rpcau.ac.in/

R. Singh

Dr Rajendra Prasad Central Agricultural University ( email )

Samastipur, Pusa
Samastipur
Bihar, Bihar 848125
India

M. Meena

Indian Council of Agricultural Research (ICAR) ( email )

Krishi Bhavan
Dr. Rajendra Prasad Road
Bangalore
India

Anjani Kumar

NCAP-ICAR ( email )

NCAP, DPS Marg
Pusa
New Delhi, 110012
India

HOME PAGE: http://www.ncap.res.in

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