47
Figure 8.1 show that both in Tamil Nadu and Karnataka a large percentage of members
are either unemployed or are housewives. One reason for the same is that members said
they joined the group more as a social activity and they benefited by savings which has
lead them to obtain internal loans when needed as well as an interest income which was
useful. This is followed by the skilled category, the category of members who have the
greatest potential to save followed by the unskilled category who have the least income.
It is hence worthwhile to look at average incomes in each category.
Table 8.1 Average monthly income (primary) of respondent
Category
Value
Skilled
4096.56
Unskilled
2019.75
Difference
2076.81
t-stat
4.33***
Observations
361
Table 8.2 shows that the difference between the income of the skilled and the unskilled
members is more than double and is significant. We find that many members involved in
skilled jobs come under the livelihood category. While very poor families resorted to
wage labor, we find that about 25% of members (more in Tamil Nadu) were earning
through some form of skill. Tailoring, beautician and petty shop were the most preferred
business. These have moved to become their source of livelihood.
