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Do Labor Intensive Industries Generate Employment? Evidence from firm level survey in India

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  • Deb Kusum Das

    (ICRIER)

  • Gunajit Kalita
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    Abstract

    This study attempts to address the issue of declining labour intensity in Indias organized manufacturing in order to understand the constraints on employment generation in the labour intensive sectors. Using primary survey data covering 252 labour intensive manufacturing-exporting firms across five sectorsapparel, leather, gems and jewellery, sports goods, and bicycles for 2005-06 an attempt is made to find out the factors which constrain employment generation in labour intensive firms. The study shows several constraints in the path of employment generation in labour intensive sectorsnon-availability of trained skilled workers, infrastructure bottlenecks, low levels of investment, labour rules and regulations, and a noncompetitive export orientation. The study suggests a set of policy initiatives to improve the employment potential of these sectors.

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    File URL: http://www.eaber.org/node/22912
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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Labor Economics Working Papers with number 22912.

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    Date of creation: Jan 2009
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    Handle: RePEc:eab:laborw:22912

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    Related research

    Keywords: Indian Organized Manufacturing; Labor Intensity; Employment Growth; Skilled workforce; Wage Structure; Export status; Machinery Usage; Labor laws; South Asia;

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    1. Bhalotra, Sonia R, 1998. "The Puzzle of Jobless Growth in Indian Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 60(1), pages 5-32, February.
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