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Dynamics of income in Bihar: evidence from village studies

Author

Listed:
  • Singh, K.M.
  • Kumar, Abhay
  • Singh, R.K.P.
  • Meena, M.S.
  • Kumar, Anjani
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.

Suggested Citation

  • Singh, K.M. & Kumar, Abhay & Singh, R.K.P. & Meena, M.S. & Kumar, Anjani, 2012. "Dynamics of income in Bihar: evidence from village studies," MPRA Paper 44821, University Library of Munich, Germany, revised 15 Nov 2012.
    • Handle: RePEc:pra:mprapa:44821
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    References listed on IDEAS

    as
    1. Mehtabul Azam & Abusaleh Shariff, 2011. "Income Inequality in Rural India: Decomposing the Gini by Income Sources," Economics Bulletin, AccessEcon, vol. 31(1), pages 739-748.
    2. Meena, M. S. & Singh, K. M. & Jha, A. K. & Singh, R. K. P. & Kumar, Abhay & Kumar, Chunchun, 2011. "Socio-Economic Determinants of Rural Poverty: An Empirical Exploration of Jharkhand State, India," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 290426, Asian Society of Agricultural Economists (ASAE).
    3. Singh, K. M. & Singh, R. K. P. & Meena, M. S. & Kumar, Abhay, 2011. "Dimensions of Poverty in Bihar," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 290427, Asian Society of Agricultural Economists (ASAE).
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    Cited by:

    1. Meena, M.S. & Singh, K.M. & Singh, R.K.P. & Kumar, Anjani & Kumar, Abhay, 2016. "An exploratory research on income dynamics, inequality, determinants & policy implications for sustainable livelihoods of tribal community in eastern India," MPRA Paper 80265, University Library of Munich, Germany, revised 23 Sep 2016.

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    More about this item

    Keywords

    Rural income; Bihar; Probit analysis; Determinants of income;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • H00 - Public Economics - - General - - - General
    • H8 - Public Economics - - Miscellaneous Issues
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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