Non-farm diversification, inequality, and mobility in Palanpur

Abstract

Data from seven decades of survey in Palanpur provide insights into the changing nature of the village economy. Starting as a predominantly agrarian economy, Palanpur has seen non-farm employment emerge as a major driver of growth and distribution of income in the village economy, but accompanied by increasing inequality. There is evidence of greater mobility among the disadvantaged in Palanpur alongside falling inter-generational mobility. Preliminary analysis suggests that the nature of non-farm activities has become increasingly casual and informal, thereby more accessible to households at the bottom of the distribution, but still significantly influenced by access to networks and family ties, particularly for the more remunerative and stable non-farm jobs.