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Employment Intensity Of Secondary Sector In India: Trends, Patterns And Determinants


  • Pattanaik, Falguni

    () (KIIT University)

  • Nayak, Narayan Chandra

    () (IIT-Kharagpur)


Expansion of the secondary sector in India is marked by the inability to achieve prolonged spells of its rapid growth, though it has shown relatively stable employment elasticity. The analysis of the nature of employment growth with output growth in the sub-sectors indicates that while historically India’s secondary sector employment was driven by manufacturing sector, in recent years, it is the phenomenal rise in construction sector that is contributing considerably towards employment creation. Negative employment elasticity in this sub-sector may, however, indicate very low labour productivity leading to poor quality of employment. There has been destruction of productive jobs in organised manufacturing as the informal employment is on the rise. The study identifies labour productivity, GDP growth, share of services to GDP, investment and foreign trade as the macroeconomic factors determining employment intensity of the secondary sector in India.

Suggested Citation

  • Pattanaik, Falguni & Nayak, Narayan Chandra, 2013. "Employment Intensity Of Secondary Sector In India: Trends, Patterns And Determinants," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 2(2), pages 157-174.
  • Handle: RePEc:ris:jrdpin:0020

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    References listed on IDEAS

    1. Gilles Mourre, 2006. "Did the pattern of aggregate employment growth change in the euro area in the late 1990s?," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1783-1807.
    2. Ana María Loboguerrero & Ugo Panizza, 2003. "Inflation and Labor Market Flexibility: The Squeaky Wheel Gets the Grease," IDB Publications (Working Papers) 1478, Inter-American Development Bank.
    3. Bhalotra, Sonia R, 1998. "The Puzzle of Jobless Growth in Indian Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(1), pages 5-32, February.
    4. Dipa Mukherjee & Rajarshi Majumder, 2008. "Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(4), pages 387-413.
    5. James Heintz, 2006. "Globalization, Economic policy and Employment: Poverty and Gender Implications," Published Studies heintz_gender, Political Economy Research Institute, University of Massachusetts at Amherst.
    6. Friedman, Milton, 1977. "Nobel Lecture: Inflation and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 451-472, June.
    7. Marco Vivarelli, 2002. "Book review," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 581-584.
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    Cited by:

    1. repec:eaa:aeinde:v:17:y:2017:i:2_7 is not listed on IDEAS
    2. Rim Mouelhi & Monia Ghazali, 2014. "The Employment Intensity of Output Growth in Tunisia and Its Determinants," Working Papers 857, Economic Research Forum, revised Nov 2014.
    3. Tregenna, Fiona., 2015. "Sectoral dimensions of employment targeting," ILO Working Papers 994867013402676, International Labour Organization.
    4. repec:ilo:ilowps:486701 is not listed on IDEAS

    More about this item


    Employment; Secondary Sector; Growth; Employment Intensity; India;

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies


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