Introduction To study developing economies it is important to examine the rural labour market Agriculture continues to be the primary source of employment in the developing countries Relying solely on agriculture to address the issue of unemployment is no longer a viable option Diversification from rural farm to non farm sector is now evident across the world in developing economies As a result the Rural Non Farm Sector (RNFS) has evolved into a significant contributor to the rural employment market
Introduction – Incidences in India In the context of India, shift of employment from in rural sector from farm to non-farm activities has gained significant importance over time The non -farm sector’s share in rural employment increased during the period 1993-94 to 2010-11 W here as the farm sector’s share in rural employment decreased during the same period
Definitions Non farm activities: Non farming activities are those which do not include farming as a source of income . These include construction, manufacturing, transporting, communication, trade and mining among others .(NSSO) Non farm employment: Employment generated from non farm activities. (NSSO) Rural non farm employment: rural non-farm employment includes employment generated in all economic activities outside the farm sector in the rural areas.(NSSO)
Definitions Rural Sector : In India Rural Sector is defined as to include settlements about 20000 or fewer inhabitants. (NABARD) Quality of Employment in Rural non farm sector: Measured through 13 variables - 1) Household Facilities 2) Ownership of Household Assets 3) Size of Land Holding 4) Average per day Earnings 5) Average number of days of working in a year 6) Average working hours per day 7) Non – wage benefits (“Measuring decent work with statistical indicators”, International Labour Review, Vol-142, no. 2 .). This was done in Indonesia with secondary data.