FACTORS DETERMINING RURAL LABOUR SUPPLY: A MICRO ANALYSIS

Rural development is the heart of the country’s economic development. Rural development is attained by providing employment opportunities to rural labour force. The aim of the present study is to explore the factors which decide about rural labour market participation. Primary source of data is used for analysis which is gathered by the authors. Binomial Logit regression method is employed to estimate the determinants of rural labour supply model. Findings indicate that Education, Economic Capital Index, and Social Capital Index have discernible impact on rural labour supply. In addition, it is observed that number of livestock and size of land holdings have negative and significant impact on rural labour force participation. The study has suggested that rural infrastructure should be developed and educational facilities should be improved.