Inequality and Determinants of Income among Rural Households in Tribal Dominated Areas of Jharkhand

Abstract

The study was undertaken to analyse the extent, diversity, inequality and determinants of income of rural households in Jharkhand-one of the most poverty stricken state of India. The study is based on the high frequency primary data collected from 160 rural households by resident investigators under the ICAR-ICRISAT collaborative project on “Tracking Changes in Rural Poverty in Household and Village Economies in South Asia”. Both descriptive and quantitative methodologies were used to analyse the above issues. Tabular analysis was used to assess the level of income among different categories of rural households. While Herfindahl-Hirschman Index was used to assess the diversity of income sources, income inequality was measured by Ginni Ratio and Lorenz curve. Further, the linear regression model was used to identify the determinants of income of rural households in tribal dominated areas of the state. The study depicted a wide variation in the level of income among different categories of households with high and pervasive income inequality among them. Though the income inequality did not exhibit a consistent relationship with farm size, the extent of inequality was found highest among labour households. Education, adoption of high yielding varieties and access to non-farm income opportunities emerged as the significant determinants of income. These findings explicitly call for sustained efforts to create rural non-farm employment opportunities, promote adoption of modern agricultural technologies and enhance education among rural households in the study area.