Article : Income Distribution Pattern In Rural Uttar Pradesh


Income Distribution Pattern In Rural Uttar Pradesh


C S Verma, Manoj Kumar Sharma

In the post liberalization period Indian economy has undergone significant structural changes adversely impacting agriculture sector. While the production of agriculture is declining year after year, its share in national GDP has also come down to 15 percent in 2013 from 35 percent in 1990. Performance of the sector in states has not been any different either. Farmers of most north Indian states had started feeling the pinch of the impact of reforms as early as mid 1990s, the intensity continues to increase even after two decades. Uttar Pradesh with a large number of small and marginal farmers and almost 60 percent of its 20 crore population engaged in agriculture, is facing a very difficult challenge. Objectives of the Study: The objective of the study are to examine the following variables: Income pattern of rural population by size of land holding ; Per households and per capita distribution of source of income in total income by land categories; Share of agriculture and allied activities in total income; Inequality of income among households by their land holding categories; and Distribution of wealth index based on assets they own. Methodology : Pyatt’s Gini decomposition model of Gini coefficient has been used in the analysis. Gini index was used to calculate the change in inequality in household income among the land categories of the four selected villages. Principal Component Analysis (PCA) method was used for creating the individual dimension index score. Each of the components used in the computation of the individual dimension index was assigned a weight (factor score) generated through PCA. The villages were purposively selected to represent the character of the state i.e., Gohanakala village in Lucknow district of Central region, Senapur village in Jaunpur district of Eastern region, Pandari village in Chitrakoot district in Bundelkhand region, Seemli village in Muzzafarnagar district of Western region. Results and Discussion: The study analysed the contribution of agriculture income in total income and, whether, the income is correlated with size of the farm. The finding reveals that the income from agriculture has not been major contributor in total income, whereas maximum contribution in total income has been through services and wage. However, the income from agriculture and allied activities (livestock) has been found maximum among others sources of income. It has also been observed from the study that the income is significantly correlated with size of farm. The 10 per cent households appropriate 38.41 per cent of the total income of  all households and an about 91 per cent  households  of highest category of land holdings. 

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