IDEAS home Printed from https://ideas.repec.org/a/sae/emecst/v6y2020i1p23-38.html
   My bibliography  Save this article

Regional Disparities in Employment Intensity of Indian Industries: A State-level Analysis

Author

Listed:
  • Sanjeev Kumar
  • Falguni Pattanaik

Abstract

The pace of industrialization plays a crucial role in the economic growth of any country. It provides high employment opportunities to the labor force, diminishes the cost of production, upsurges the saving, and raises the demand for goods and services in the economy. Furthermore, it helps in relocating surplus labor from the agriculture sector. This study is an attempt to find the states in India wherein the industrial sector generates more jobs. It further unearths the decomposition of industrial output and the regional concentration and dominance of industrial activities in India. To accomplish the objectives, the study utilizes the secondary data collected from the Annual Survey of Industry. The period of the study is from 1980–1981 to 2013–2014, and it encompasses 18 major states in India. The findings of the study suggest that a weak relationship exists between employment and output of the industrial sector for the majority of the states during the study period. The decomposition results show that there exists a large degree of regional disparity in industrial growth across the states, which is mostly driven by labor productivity and not by an increase in the supply of labour. Therefore, in order to boost the industrial sector, the states lagging in industrial development should give more emphasis on state-specific industrial policy to attract more investment and create more infrastructure.

Suggested Citation

  • Sanjeev Kumar & Falguni Pattanaik, 2020. "Regional Disparities in Employment Intensity of Indian Industries: A State-level Analysis," Emerging Economy Studies, International Management Institute, vol. 6(1), pages 23-38, May.
    • Handle: RePEc:sae:emecst:v:6:y:2020:i:1:p:23-38
    DOI: 10.1177/2394901520907729
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2394901520907729
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2394901520907729?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Seifallah SASSI & Mohamed GOAIED, 2016. "Long-term employment intensity of sectoral output growth in Tunisia," International Labour Review, International Labour Organization, vol. 155(2), pages 253-263, June.
    2. Davide Furceri & Ernesto Crivelli & Mr. Joël Toujas-Bernate, 2012. "Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis," IMF Working Papers 2012/218, International Monetary Fund.
    3. Boyce, James K, 1986. "Kinked Exponential Models for Growth Rate Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(4), pages 385-391, November.
    4. Dipak Mazumdar, 2003. "Trends in employment and the employment elasticity in manufacturing, 1971--92: an international comparison," Cambridge Journal of Economics, Oxford University Press, vol. 27(4), pages 563-582, July.
    5. Falguni Pattanaik & Narayan Nayak, 2013. "Trends and forecasting of employment intensity of growth in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(3), pages 438-459.
    6. repec:ilo:ilowps:343576 is not listed on IDEAS
    7. Hansa Jain, 2017. "Contractualization and Wage Differences: Evidence from Organized Manufacturing Industries in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(3), pages 461-479, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mauricio Apablaza & Kirsten Sehnbruch & Pablo González & Rocío Méndez, 2023. "Regional inequality in multidimensional quality of employment: insights from Chile, 1996–2017," Regional Studies, Taylor & Francis Journals, vol. 57(3), pages 416-433, March.
    2. Apablaza, Mauricio & Sehnbruch, Kirsten & González, Pablo & Mendez Pineda, Rocio, 2021. "Regional inequality in multidimensional quality of employment (QoE): insights from Chile, 1996-2017," LSE Research Online Documents on Economics 109819, London School of Economics and Political Science, LSE Library.
    3. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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.
    2. Emiliano COLANTONIO & Gianluigi NICO, 2014. "CAN OKUN’s LAW EXPLAIN DECENT WORK DEFICIT FOR YOUNG PEOPLE IN EUROPE? A FOCUS ON THE ROMANIAN ECONOMY," Romanian Journal of Economics, Institute of National Economy, vol. 38(1(47)), pages 5-35, June.
    3. Huiyan Wang & Yong Li & Jia Li & Mengyuan Yu, 2020. "Internalization of External Benefits Brought by Hydropower Development," IJERPH, MDPI, vol. 17(1), pages 1-15, January.
    4. Baffes, John & Gautam, Madhur, 2001. "Assessing the sustainability of rice production growth in Bangladesh," Food Policy, Elsevier, vol. 26(5), pages 515-542, October.
    5. Majid, Nomaan., 2011. "On the income dimension of employment in developing countries," ILO Working Papers 994617623402676, International Labour Organization.
    6. Abdih, Yasser & Behar, Alberto & Cevik, Serhan & Chami, Ralph & Dougherty-Choux, Lisa & Furceri, Davide & Janus, Nick & Zimand, Paul, 2012. "A Template for Analyzing and Projecting Labor Market Indicators," MPRA Paper 82682, University Library of Munich, Germany.
    7. Nathalie Gonzalez Prieto & Prakash Loungani & Saurabh Mishra, 2018. "What Lies beneath? A Sub-National Look at Okun’s Law in the United States," Open Economies Review, Springer, vol. 29(4), pages 835-852, September.
    8. Balakrishnan, Pulapre & Das, Mausumi & Parameswaran, M., 2017. "The internal dynamic of Indian economic growth," Journal of Asian Economics, Elsevier, vol. 50(C), pages 46-61.
    9. EL HAMADI Youssef & ABDOUNI Abdeljabbar & BOUAOUZ Karima, 2017. "The Sectoral Employment Intensity Of Growth In Morocco: A Pooled Mean Group Approach," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 87-98.
    10. Abdelaaziz Aït Ali & Yassine Msadfa, 2017. "Manufacturing Employment Elasticity and Its Drivers in Developing and Emerging Countries : Focus on Sub-Saharan Africa," Research papers & Policy papers 1709, Policy Center for the New South.
    11. Holger Gorg & Cecilia Hornok & Catia Montagna & George E. Onwordi, 2020. "Employment to output elasticities and reforms towards flexicurity: Evidence from OECD Countries," Discussion Papers 2020-24, University of Nottingham, GEP.
    12. Tsujita, Yuko, 2005. "Economic Reform and Social Sector Expenditures: A Study of Fifteen Indian States 1980/81-1999/2000," IDE Discussion Papers 31, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    13. Željko Kuèiš & Irena Paliæ, 2021. "Empirical analysis of the elasticity of employment to output gap in the republic of croatia," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 19(1), pages 94-105.
    14. D. Shyjan, 2007. "Public investment and agricultural productivity: A State-wise analysis of foodgrains in India," Centre for Development Studies, Trivendrum Working Papers 387, Centre for Development Studies, Trivendrum, India.
    15. K. Burggraeve & G. de Walque & H. Zimmer, 2015. "The relationship between economic growth and employment," Economic Review, National Bank of Belgium, issue i, pages 32-52, June.
    16. Adegboye , Abidemi C. & Arodoye , Nosakhare L., 2023. "Structural Changes and Employment Growth in Sub-Saharan Africa: Does Demographic Structure Matter?," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(2), pages 143-166, June.
    17. Bishwanath Goldar & K. L. Krishna & Suresh Chand Aggarwal & Deb Kusum Das & Abdul Azeez Erumban & Pilu Chandra Das, 2017. "Productivity growth in India since the 1980s: the KLEMS approach," Indian Economic Review, Springer, vol. 52(1), pages 37-71, December.
    18. Željko Kuèiš & Irena Paliæ, 2021. "Empirical analysis of the elasticity of employment to output gap in the republic of croatia," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 19(1), pages 94-105.
    19. Pulapre Balakrishnan & Mausumi Das & M. Parameswaran, 2020. "Growth Transitions in India: Myth and Reality," Working Papers 39, Ashoka University, Department of Economics.
    20. Falguni Pattanaik, 2013. "Employment Intensity of Growth in India," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 38(4), pages 483-503, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emecst:v:6:y:2020:i:1:p:23-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: https://www.imi.edu/delhi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.