Incidence of forest income on reduction of inequality: Evidence from forest dependent households in milieu of joint forest management

This study suggests that there is a narrower scope to expand income inequality with the increase in forest source of income to total income relative to non-forest income irrespective of the type of forest fringe villages. The addition of forest income after joint forest management (JFM) reduces measured income inequality by about 12%, all else equal, in the JFM involved households. But no such perceptible decrease has been found for non-JFM households during this period. Categorically, forest income plays the dominant role in reducing measured income inequality for those households who are relatively asset poor and that also live below poverty line. The study also shows that the non-involvement in JFM programme by the non-JFM households might bring about a major environmental shirking, because illegal timber income constitutes the major part in total income for non-JFM households even after JFM scenario. (C) 2010 Elsevier B.V. All rights reserved.