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Influence of Political Alignment and Federal Structure on Public Sector Employment: The case of India

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  • Ritika Jain

    (Centre for Development Studies)

Abstract

The study examines political alignment and central government's influence on employment in enterprises owned by the state governments in the Indian context. Using data on 625 Indian SLPEs between 2007-08 and 2009-10, the study employs regression and propensity score matching methods to understand the effect of these variables on employment outcomes. The results suggest that employment in SLPEs is higher if the SLPE is located in a state that is run by the same party that governs the Centre. Further, SLPE employment rises with a rise in the loan amount given by the Centre to these enterprises. In fact, the effect of Centre loans on employment in SLPE is stronger if the SLPE operates in a politically aligned (with Centre) stat

Suggested Citation

  • Ritika Jain, 2017. "Influence of Political Alignment and Federal Structure on Public Sector Employment: The case of India," Economics Bulletin, AccessEcon, vol. 37(1), pages 305-313.
    • Handle: RePEc:ebl:ecbull:eb-16-00806
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    File URL: http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I1-P27.pdf
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    References listed on IDEAS

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    1. Bharatee Dash & Angara Raja, 2014. "Do political determinants affect revenue collection? Evidence from the Indian states," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(3), pages 253-278, September.
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    Cited by:

    1. Ritika Jain, 2022. "State Ownership and Dividend Decisions: Economic Versus Political Determinants," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 23-42, March.

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    More about this item

    Keywords

    Employment; political alignment; federal structure; public sector enterprises; propensity score matching;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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