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Agricultural Labour Productivity and Its Determinants in India

Author

Listed:
  • K. Shanmugan

    (The Maharaja Sayajirao University of Baroda)

  • Bhagirath Prakash Baria

    (The Maharaja Sayajirao University of Baroda)

Abstract

This study attempts to modestly undertake an empirical analysis to understand the issues of agricultural labour productivity measured in different dimensions and their determinants and, accordingly, their implications for agricultural growth. Labour productivity is measured as the ratio of total agricultural output to total labour input which can be located in the broader framework of growth accounting method put forth by Solow. The labour productivity index is estimated across four different time-series dimensions. All the estimated productivity indices except labour productivity index based on seasonal and cyclical components show an increasing trend in labour productivity in agriculture though there are very negligible and marginal variations between various estimates across various dimensions of time-series measurements. It is argued here that probably the factors determining cyclical variations in the agricultural output could be different from what they appear to be for the productivity movements in trend. The estimated model clearly exemplifies that rural literacy, electricity consumption, gross capital formation and weather dummy are the most important determinants of labour productivity in the Indian agriculture during the sample period under study.

Suggested Citation

  • K. Shanmugan & Bhagirath Prakash Baria, 2019. "Agricultural Labour Productivity and Its Determinants in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(3), pages 431-449, September.
    • Handle: RePEc:spr:ijlaec:v:62:y:2019:i:3:d:10.1007_s41027-019-00180-x
    DOI: 10.1007/s41027-019-00180-x
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    References listed on IDEAS

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    1. Emerick, Kyle, 2018. "Agricultural productivity and the sectoral reallocation of labor in rural India," Journal of Development Economics, Elsevier, vol. 135(C), pages 488-503.
    2. Katsushi S. Imai & Raghav Gaiha & Fabrizio Bresciani, 2017. "The Labour Productivity Gap between agricultural and non-agricultural sectors and Poverty in Asia," Discussion Paper Series DP2017-04, Research Institute for Economics & Business Administration, Kobe University, revised May 2018.
    3. Bishnupriya Gupta, 2011. "Wages, unions, and labour productivity: evidence from Indian cotton mills," Economic History Review, Economic History Society, vol. 64(s1), pages 76-98, February.
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