Jobs Off the Farm: Wealth, Human Capital, and Social Group in Rural Eastern India

Abstract

<p>This study examines the effects of wealth, human capital, and social group on the occupational choice and income of farm households, to gain an understanding of the mechanism underlying the recently increasing income diversification in rural eastern India. The results show that wealth and human capital have a positive impact on the choice of high-return jobs, and low caste workers are more likely to work in casual, low-paying jobs, partly due to their dependence on personal networks in finding jobs. Notably, no clear evidence of association between social group and income is found.</p