An Empirical Study on Rural Non-farm Employment in Developing and Urbanised Regions of Maharashtra, India

Abstract

Maharashtra accounts for a meagre share of employment in the rural non-farm sector compared to the other states. There is a high degree of disparity in the socio-economic development, level of urbanisation and social infrastructure in Maharashtra, due to which there are differences in the factors affecting participation in rural non-farm employment (RNFE) across the different regions in the state. An empirical study of Kadam Wak Wasti village in the Pune district in Maharashtra reveals that rural men dominate RNFE while rural women are engaged in the farm sector. The service sector accounts for the majority of RNFE in the village. The casual nature of non-farm employment dominated the sector. The educated and skilled individuals in the village were engaged in RNFE, while most of the landless and uneducated individuals were confined to the farm sector. Agricultural labour was considered the last resort due to low wages and a lack of required skills. Thus, urbanisation and proximity to an urban area positively impact the growth of RNFE, affirming that the growth of RNFE in the developing and urbanised regions of the state is due to pull or growth-induced factors. JEL: A10, J01, J21, R10, R11