Drivers of Farmers' Income: The Role of Farm Size and Diversification

Published By: Indira Gandhi Institute of Development Research, M | Published Date: September, 01 , 2017

The study finds that a U-shaped relationship exists between farm size and farm / farmer's income. The results also show that both on-farm and off-farm diversification have an inverted U-shape relationship with farm / farmer's income. That is, diversification up to some level helps improve income but excessive diversification might lead to misallocation of resources and hence a fall in income. The results also show that engagement in public works programme such as MGNREGA has an adverse impact on farm / farmer's income, possibly due to the opportunity cost of time spent in such programmes. Finally, positive effect of education on income is seen only at somewhat high education levels.

Author(s): Varun Kumar Das, A. Ganesh Kumar | Posted on: Sep 18, 2017 | Views() | Download (314)


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