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Employment growth in rural India: Distress driven?

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  • Vinoj Abraham

    ()
    (Centre for Development Studies)

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. Under conditions of distress, when income levels fall below sustenance then that part of the normally non-working population are forced to enter the labour market to supplement the household income. The decline of agricultural sector has also probably created forced sectoral and regional mobility of the normally working population with the normally non-working population complementing them.

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Bibliographic Info

Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 404.

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Length: 40 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:ind:cdswpp:404

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Related research

Keywords: Rural Employment; Gender; Rural Wages; Labour Participation; Poverty; Agrarian Distress;

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  1. David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009. "Fertility, female labor force participation, and the demographic dividend," Journal of Economic Growth, Springer, vol. 14(2), pages 79-101, June.
  2. Kristin Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 141-164, Fall.
  3. 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, vol. 1(1), pages 149-79, September.
  4. K. Sundaram, 2007. "Pemployment And Poverty In India-- 2000-2005," Working papers 155, Centre for Development Economics, Delhi School of Economics.
  5. Sharif, Mohammed, 1991. "Poverty and the forward-falling labor supply function: A microeconomic analysis," World Development, Elsevier, vol. 19(8), pages 1075-1093, August.
  6. Bardhan, Pranab K, 1979. "Labor Supply Functions in a Poor Agrarian Economy," American Economic Review, American Economic Association, vol. 69(1), pages 73-83, March.
  7. 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 396, Centre for Development Studies, Trivendrum, India.
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Cited by:
  1. Sunil Mani, 2010. "Financing of industrial innovations in India: how effective are tax incentives for R&D?," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 3(2), pages 109-131.
  2. 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.
  3. Girard, Alexandra M., 2014. "Stepping into Formal Politics," World Development, Elsevier, vol. 57(C), pages 1-18.
  4. 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).
  5. Abraham, Vinoj, 2011. "Agrarian distress and rural non-farm sector employment in India," MPRA Paper 35275, University Library of Munich, Germany.
  6. 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), issue 2011.
  7. 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.

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