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Employment Growth in Rural India: Distress Driven?

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  • Vinoj Abraham

Abstract

The 61st round of NSS shows that there is a turnaround in employment growth in rural India after a phase of ‘jobless growth’. Paradoxically, this employment growth occurred during a period of wide spread distress in agriculture sector that include low productivity, price instability and stagnation leading to indebtedness. Under the typical neoclassical tradition, this trend would have predicted further contraction of employment in the rural economy. However, further probing reveals that employment growth in the rural areas is probably a response to the crisis that is gripping the agriculture sector. [WP No. 404].

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Paper provided by eSocialSciences in its series Working Papers with number id:1824.

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Date of creation: Jan 2009
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Handle: RePEc:ess:wpaper:id:1824

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Keywords: NSSO; rural India; jobless; growth; rural economy; employment; agriculture sector; productivity; instability; stagnation; price;

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  1. Singh, Inderjit & Squire, Lyn & Strauss, John, 1986. "A Survey of Agricultural Household Models: Recent Findings and Policy Implications," World Bank Economic Review, World Bank Group, World Bank Group, vol. 1(1), pages 149-79, September.
  2. K. Sundaram, 2007. "Employment and Poverty in India: 2000-2005," Working Papers id:1100, eSocialSciences.
  3. K.N. Nair & Vineetha Menon & Vineetha Menon, 2007. "Agrarian distress and livelihood strategies: A Study in Pulpalli panchayat, Wayanad District, Kerala," Centre for Development Studies, Trivendrum Working Papers, Centre for Development Studies, Trivendrum, India 396, Centre for Development Studies, Trivendrum, India.
  4. Sharif, Mohammed, 1991. "Poverty and the forward-falling labor supply function: A microeconomic analysis," World Development, Elsevier, Elsevier, vol. 19(8), pages 1075-1093, August.
  5. Kristin Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 14(4), pages 141-164, Fall.
  6. David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009. "Fertility, female labor force participation, and the demographic dividend," Journal of Economic Growth, Springer, Springer, vol. 14(2), pages 79-101, June.
  7. Bardhan, Pranab K, 1979. "Labor Supply Functions in a Poor Agrarian Economy," American Economic Review, American Economic Association, American Economic Association, vol. 69(1), pages 73-83, March.
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Cited by:
  1. Abraham, Vinoj, 2011. "Agrarian distress and rural non-farm sector employment in India," MPRA Paper 35275, University Library of Munich, Germany.
  2. Klasen, Stephan & Pieters, Janneke, 2012. "Push or Pull? Drivers of Female Labor Force Participation during India's Economic Boom," IZA Discussion Papers 6395, Institute for the Study of Labor (IZA).
  3. Sunil Mani, 2008. "Financing of industrial innovations in India How effective are tax incentives for R & D?," Centre for Development Studies, Trivendrum Working Papers, Centre for Development Studies, Trivendrum, India 405, Centre for Development Studies, Trivendrum, India.
  4. Singh, Lakhwinder & Shergill, Baldev Singh, 2009. "Technological Capability, Employment Growth and Industrial Development: A Quantitative Anatomy of Indian Scenario," MPRA Paper 19059, University Library of Munich, Germany.
  5. Girard, Alexandra M., 2014. "Stepping into Formal Politics," World Development, Elsevier, Elsevier, vol. 57(C), pages 1-18.
  6. World Bank, 2014. "India : Women, Work and Employment," World Bank Other Operational Studies 18737, The World Bank.
  7. Murthy, P.S. Srikantha & Indumati, S., 2011. "Economic Analysis of MGNREGA in the Drought–prone States of Karnataka, Rajasthan and Irrigation–dominated State of Andhra Pradesh," Agricultural Economics Research Review, Agricultural Economics Research Association (India), Agricultural Economics Research Association (India), issue 2011.
  8. Pieters, Janneke & Klasen, Stephan, 2011. "Drivers of female labour force participation in urban India during India's Economic Boom," Proceedings of the German Development Economics Conference, Berlin 2011 65, Verein für Socialpolitik, Research Committee Development Economics.

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