Occupational Diversification among Rural Groups-A Case Study of Rural Transformation in Tamil Nadu

Rural Groups A Case Study of Rural Transformation in Tamil Nadu R Maria Saleth Treating the employment and income patterns underlying the observed occupational structure as an analytical tool and using primary information obtained from 218 households in four villages in Tiruchirapalli district of Tamil Nadu, this article aims to empirically explain as to how and why rural transformation has a differential impact on various rural groups in terms of employment and income diversification. It shows that since the income benefits of rural transformation are related more with asset ownership than with employment shares, employment diversification, though necessary, is not sufficient for income diversification among the rural poor. While occupational diversification does contribute to income stability, its role in income enhancement is severely constrained by lower wage rates in rural occupations where the poor groups participate the most.