Economic impacts and inequality mitigation of wicker handicraft entrepreneurship in rural Kashmir, India

This paper has investigated the economic impacts, income inequality mitigation and determinants of wicker handicraft entrepreneurship in Pulwama district of Jammu & Kashmir. Results show that collection of withies from Parrotia jacquemontiana, Cotoneaster baciliaris, Indigofera pulchella and Salix spp. was 61.71 t/year for manufacture of 43514 wicker handicrafts that generated an income of Rs 5953470/year. Wicker handicraft income contributes 66.97%, to the household income, followed by farm (23.46%) and non-farm (9.58%) incomes. Gini coefficient was 0.37 when wicker handicraft income was considered, and 0.53 when it was ignored. This indicates that the wicker handicraft income has strong equalizing income distribution. Regression analysis showed that all explanatory variables jointly accounted 81.50% of the variation in the wicker handicraft income. Education, family composition, housing status, subsequent occupation and gross annual income were key factors influencing wicker handicraft income. To achieve the socioeconomic development and livelihood diversification the policy must be directed towards development of rural industries such as wicker handicraft.