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Changing Sources of Household Income, Poverty, and Sectoral Inequality in S ri L anka, 1990–2006
Author(s) -
Kumanayake Nandika S.,
Estudillo Jonna P.,
Otsuka Keijiro
Publication year - 2014
Publication title -
the developing economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.305
H-Index - 30
eISSN - 1746-1049
pISSN - 0012-1533
DOI - 10.1111/deve.12033
Subject(s) - nonfarm payrolls , economics , poverty , poverty reduction , labour economics , household income , economic inequality , inequality , demographic economics , economic growth , agriculture , geography , mathematical analysis , mathematics , archaeology
Comparing dynamic changes in household income and poverty among urban, rural, and estate sectors in S ri L anka from 1990 to 2006, this study finds that a shift of household income away from farm to nonfarm sources is accompanied by a significant improvement in household income and reduction in poverty, particularly in the rural sector. Major contributing factors are the rise in returns to labor, in general, and educated labor, in particular, due to the development of the nonfarm labor market. Persistently low income among estate households can be explained primarily by the limited availability of nonfarm employment opportunities and the low education levels of working members.