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Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?

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  • Dipa Mukherjee
  • Rajarshi Majumder

Abstract

Tertiarisation of the labour market has been associated globally with economic progress. In developing countries, labour market deformities may push people into the service economy out of distress. This paper examines the tertiarisation process in the Indian labour market to identify the reasons behind such trends and the likely impact of such movements. It is observed that the employment growth in the tertiary sector had been dynamic and growth-induced during the 1980s, but in recent times has become distress-driven. Sub-sectors within the tertiary sector are behaving differently, indicating the heterogeneity of this sector. Policymakers should note these issues and take appropriate steps not only to boost high-end jobs but also to improve productivity and returns in low-end jobs. Only then will a tertiary sector revolution in India be beneficial to the workers en masse and be sustainable.

Suggested Citation

  • Dipa Mukherjee & Rajarshi Majumder, 2008. "Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(4), pages 387-413.
    • Handle: RePEc:taf:rjapxx:v:13:y:2008:i:4:p:387-413
    DOI: 10.1080/13547860802364729
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    References listed on IDEAS

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    1. Victor R. Fuchs, 1980. "Economic Growth and the Rise of Service Employment," NBER Working Papers 0486, National Bureau of Economic Research, Inc.
    2. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1, March.
    3. Martin Feldstein, 1980. "The American Economy in Transition," NBER Books, National Bureau of Economic Research, Inc, number feld80-1, March.
    4. Richard E. Caves & Walter B. Wriston & James R. Schlesinger, 1980. "The Structure of Industry," NBER Chapters, in: The American Economy in Transition, pages 501-562, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Vélez Tamayo, Julián Mauricio, 2018. "La Ley Petty-Clark en el Área Metropolitana del Valle de Aburrá en Colombia, en el periodo 2000-2016 [The Petty-Clark law in the Metropolitan Area of The Aburrá Valley in Colombia, in the period 20," MPRA Paper 85151, University Library of Munich, Germany.
    2. Rajarshi Majumder, 2023. "The Employment Challenge in India: Hundred Years from ‘Ten days that shook the World’," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 37-59, March.
    3. Mukherjee, Dipa & Majumder, Rajarshi, 2023. "Youth employment in India: dimensions and challenges," MPRA Paper 120105, University Library of Munich, Germany.
    4. Vélez Tamayo, Julián Mauricio, 2016. "Sir William Petty y la conformación de la Ley Petty-Clark [Sir William Petty and the conformation of the Petty-Clark Law]," MPRA Paper 76345, University Library of Munich, Germany.
    5. Pattanaik, Falguni & Nayak, Narayan Chandra, 2013. "Employment Intensity Of Secondary Sector In India: Trends, Patterns And Determinants," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 2(2), pages 157-174.
    6. 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.

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    More about this item

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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