Extent and Determinants of Poverty among Rural Non-Farm Workers in Punjab

Abstract

The economy of Punjab has been undergoing the process of structural change. The share of the primary sector in total employment has declined at a slower rate. Trends have that people are shifting to the non-farm sector as there is little potential in the agricultural sector to generate additional employment opportunities. The number of non-farm workers is increasing continuously in Punjab. In the non-farm sector, most of the regular jobs are being created in manufacturing and services. The non-manufacturing sector is mainly creating casual employment opportunities. In this background, the present paper examines the poverty status of the rural non-farm workers in Punjab. Using a sample of 659 households from the three districts of Punjab, the study reveals that about 19 percent of the non-farm workers live below the poverty line and 5.27 percent are extremely poor. The incidence of poverty is higher among the SC households than other castes. The workers, who are employed in casual jobs, are more prone to poverty. The greatest proportion of those living below the poverty line can be found in the case of the workers employed in brick kilns and in electronics repair works. About 37 percent of those working as construction workers, loaders in the grain market or in MGNREGS, are living below the poverty line. All of the wage workers in these three categories are poor and vulnerable. The proportion of non poor workers increases and that of living below the poverty line declines with the increase in the level of education and increase in the size of land ownership.