Economic Dynamics of Household Income, Consumption Expenditure and Poverty among Agricultural Households in Mountainous States of India

Abstract

The study, using unit level data from two latest nationally representative surveys, examines changes in the levels and sources of household income, consumption expenditure, and incidence of poverty among agricultural households in mountainous states of India. It also identifies factors affecting household income and the probability of an agricultural household falling below the poverty line in each state. The results show that a significant decrease in the per cent share of income from cultivation is accompanied by a significant increase in the share of income from wages and salary. The results also show that the average annual income of such households is higher than their average annual consumption expenditure in most states and a significant decrease in poverty among them.