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Employment Elasticity in India and the U.S., 1977-2011: A Sectoral Decomposition Analysis

Author

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  • Basu, Deepankar

    (Department of Economics, University of Massachusetts)

  • Das, Debarshi

    (Department of Humanities and Social Sciences, Indian Institute of Technology, Guwahati)

Abstract

This paper analyses the phenomenon of jobless growth in India and the US through the lens of employment elasticity. Analytical results are derived for decompositions of both the level and change of aggregate employment elasticity in terms of sectoral elasticities, relative growth and employment shares. Estimates of these decompositions are presented with employment and output data from relevant sources for both economies. In India, the agricultural sector was the key determinant of both the level and change of aggregate elasticity till the early 2000s. In USA, services is the most important determinant of the level of, but manufacturing remains an important driver of changes in, aggregate employment elasticity.

Suggested Citation

  • Basu, Deepankar & Das, Debarshi, 2015. "Employment Elasticity in India and the U.S., 1977-2011: A Sectoral Decomposition Analysis," UMASS Amherst Economics Working Papers 2015-07, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2015-07
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    References listed on IDEAS

    as
    1. Caballero, Ricardo J. & Hammour, Mohamad L., 1998. "Jobless growth: appropriability, factor substitution, and unemployment," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 48(1), pages 51-94, June.
    2. Deepankar Basu & Duncan K. Foley, 2013. "Dynamics of output and employment in the US economy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(5), pages 1077-1106.
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    More about this item

    Keywords

    employment; output; elasticity;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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