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Macroeconomic Determinants of Employment Intensity of Growth in India

Author

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  • Falguni Pattanaik

    (Falguni Pattanaik (the corresponding author) is Assistant Professor at the School of Humanities, KIIT University, Bhubaneswar, email: falguni@hss.iitkgp.ernet.in)

  • Narayan Chandra Nayak

    (Narayan Chandra Nayak is Associate Professor at the Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, email: ncnayak@hss.iitkgp.ernet.in)

Abstract

Despite India’s resurgent growth over the past years, the country seems to have failed miserably on the employment front. The employment content of economic growth—the employment intensity of growth—is on the decline. The objective of the present study is to identify the macroeconomic determinants which influence the employment intensity of growth in India. The study covers data for the period 1993–94 to 2009–10 across 15 major Indian states and applies a panel data model to find out these determinants. The results tend to suggest that labour supply, economic structure, price instability and human capital are major determining factors. Pro-employment growth in India may require measures like diversification of economic activities towards labour-intensive sectors, price stability, skill-based education and adoption of labour-intensive technology. JEL Classification: J21, J23

Suggested Citation

  • Falguni Pattanaik & Narayan Chandra Nayak, 2014. "Macroeconomic Determinants of Employment Intensity of Growth in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(2), pages 137-154, May.
    • Handle: RePEc:sae:mareco:v:8:y:2014:i:2:p:137-154
    DOI: 10.1177/0973801013519997
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    More about this item

    Keywords

    Employment intensity of growth; Economic structure; Human capital; Labour supply; Inflation;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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