Longitudinal study conducted in rural Bihar points to increasing outmigration for work, and its importance in livelihood strategies of households in rural Bihar. Remittances have thus become increasingly important and are a crucial link between source and destination areas. Based on primary data collected in 12 representative villages in seven districts, sources of livelihoods and local income (agriculture, livestock, non-agriculture) are examined vis-à-vis remittances in rural Bihar. Changes in the distribution of income sources over time are studied, disaggregated by household variables such as caste, class and landownership, and individual variables such as gender and education, across income quintiles, giving insights into the role of migration (and remittances) in agrarian change, livelihood diversification and social transformation in rural Bihar.