Primary Income Sources of Agricultural Household in Rural India: Deciphering Meso-Micro Paradoxes using Hierarchical Analysis

This paper has analysed the micro and macro level determinants which influence household's access to a primary income source, using nationally representative data collected by NSSO which covers about 32, 000 agricultural households in rural India. For analysing both micro and macro level variables simultaneously, the study has used a hierarchal model (multi-level multi-nominal model). The key findings from the study are: (i) crop production is the major primary income sources, followed by wages, non-agriculture, remittances and livestock; (ii) households with lower landholding size have diverse primary income sources; (iii) age, gender, education level and social category of the household define the household's access to a particular income source. Among macro-economic variables defining the state characteristics only, rural electricity coverage has shown a significant relationship. The households in regions with higher electricity coverage are more likely to be in noncrop based occupation as primary sources of income. The study has shown that micro-level factors are hindering households from opting non-crop based primary income sources. There is a continuous need to invest in human and physical capital of the poor farmers for enable them to have access to lucrative jobs.