Effect of Mechanization on the welfare of marginalized sections of the society

This paper examines the degree of mechanization in farm operations using household level data from four Indian states. It further explores the differential returns to farming and assesses the direct and indirect welfare distributional outcomes produced by mechanization. Findings suggest that the marginalized groups as defined in the study (those with limited factor endowments; those belonging to disadvantaged social groups and those who are subsistence oriented) exhibit lower levels of agricultural mechanization and earn substantially lower farm and off-farm incomes compared to others. The objective of the paper is to investigate how a technological change can generate major economic benefits but at the same time provoke adverse effects on the marginalized section of society. Decomposition of displaced labor as a result of mechanization shows that the displaced hired labor mainly belongs to the most vulnerable social groups of STs and SCs which forms the bulk of the rural labor force. The results demand undertaking development approaches that have the potential of bridging the productivity gaps promoting inclusive growth in the agriculture sector and to formulate strategies that can overcome the constraints faced by the marginalized farmers, thereby making farming more resilient and equitable. Acknowledgement :