Farm Productivity and Rural Poverty in India
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To what extent do India’s rural poor share in agricultural growth? Combining data
from 24 household sample surveys spanning 35 years with other sources, we estimate a
model of the joint determination of consumption-poverty measures, agricultural wages,
and food prices. We find that higher farm productivity brought both absolute and relative
gains to poor rural households. A large share of the gains were via wages and prices,
though these effects took time. The benefits to the poor were not confined to those near
the poverty line.