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The Nature of Employment in India's Services Sector: Exploring the Heterogeneity


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  • Gaurav Nayyar
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    For some observers, the dramatic growth of the services sector in India reflects rapid strides made by educated professionals.� Some others see it as the expansion of an employer of last resort.� Given this heterogeneity, the object of the paper is to analyze the nature of employment being created in the different sub-sectors of services, relative to the industrial sector.� The nature of employment is defined to include educational requirements and quality, where the latter comprises wages, job security and social protection.� Using different econometric models to analyse household survey data from India in 1993-94 and 2004-05, we find the following.� First, sub-sectors of services are generally either 'good' or 'bad' employers.� Second, service sub-sectors with low educational requirements have low overall quality of employment, and vice-versa.� Moreover, employment expansion appears to be more in sub-sectors where educational requirements and quality of employment is low.

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    Bibliographic Info

    Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 452.

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    Date of creation: 01 Sep 2009
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    Handle: RePEc:oxf:wpaper:452

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    Keywords: Services; India; Employment; Educational requirements; Wages; Contracts;

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