Determinants of rural occupational choice in the North-Eastern Region of India

Abstract

The rural non-farm sector (RNFS) has transitioned from a residual to a major employment generating sector which is pursued invariably by every rural household. Its growing significance can be seen in a country like India where majority of the population resides in rural regions which has high incidence of poverty. Although the RNFS was initially considered as a residual sector, its crucial role in generating in-situ employment opportunities and reducing inequality has been found in rural India. The North-Eastern region of India has also witnessed this transition where significance of industrial and tertiary sectors as a livelihood option has gained importance in recent years. Focusing on this geographical region is crucial as the significance of industrial and tertiary sectors as a livelihood option has gained importance in recent years.  Also, 80 percent of this region is rural and increased mechanization in agriculture and issue of insurgency has led to fall in employment generation and discouraged private investment in the primary sector. Despite the growing importance of the RNFS North-East India, no studies have been extensively undertaken to understand the type of non-farm activities prevalent in this region and what factors encourage workers to join here. Therefore, the objective of this paper is to analyses the trend in the participation of workers in different non-farm activities and examine the different factors that influence rural workers to choose between farm and non-farm sector in North-East India. Applying a binary logistic regression model, we found that participation in non-farm employment is among females compared to males. However, this pattern changes for females who are educated above the higher secondary level. Similarly, their participation increases if they belong to high income class. Further participation is also high among Hindus and Muslims. Our findings demonstrate the favourable impact of education in enabling them to compete for jobs outside agriculture. From a policy perspective, emphasis should be place on the expansion of non-farm opportunities suitable for females. Also, educational facilities should be made more accessible which will encourage greater participation of individuals from NE India to work in high remunerative non-farm jobs.