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Structure and growth of employment: evidence from India KLEMS data

Author

Listed:
  • Suresh Chand Aggarwal
  • Bishwanath Goldar

Abstract

Purpose - This study aims to analyze the structure and trend in employment in the Indian economy between 1980-8081 and 2015-2016. Design/methodology/approach - Use of India KLEMS data set. Estimate growth rate of employment and discuss employment prospects using “Point” employment elasticity. Findings - Whilst India’s GDP growth rate has been quite impressive since the reforms of 1991, the rate of employment growth, especially in the recent period of 2003-2015, has been quite slow (1 per cent) with low employment elasticity (0.1). The pattern of employment growth has also been imbalanced with slow rate of employment growth in manufacturing and rapid growth rate in the construction sector. India now also has low labour force participation rate and a large share of informal employment in the economy. Research limitations/implications - The limitation is the lack of reliable data on employment for the recent period. Practical implications - With overall low employment elasticity, India would have to explore sectors where more employment opportunities could be created. Social implications - India has to create not only more jobs but also “good” jobs. Originality/value - The India KLEMS data provide a time series for employment, which has been used in this paper to find “Point” elasticity instead of arc elasticity of employment and is an improvement over existing employment elasticity estimates.

Suggested Citation

  • Suresh Chand Aggarwal & Bishwanath Goldar, 2019. "Structure and growth of employment: evidence from India KLEMS data," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 12(2), pages 202-228, June.
    • Handle: RePEc:eme:igdrpp:igdr-10-2018-0103
    DOI: 10.1108/IGDR-10-2018-0103
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    Citations

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    Cited by:

    1. Sanjeev Kumar & Falguni Pattanaik & Ajay K. Singh, 2021. "Modeling Trade–Employment Elasticity Nexus: Evidence from India," Emerging Economy Studies, International Management Institute, vol. 7(1), pages 62-75, May.

    More about this item

    Keywords

    Technology; Manufacturing; Trade; Employment growth; Demographic dividend; Employment elasticity; J21; J23; J24;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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